Is Bankruptcy My Only Option?

Is Bankruptcy My Only Option

Is Bankruptcy My Only Option?

Bankruptcy is not the only debt solution option available to resolve overwhelming debt. Your Trustee (Licensed Insolvency Trustee) can also put together a settlement proposal to your creditors. Where you pay a portion of the debt, you owe your creditors, and the creditors write off the remaining balance of the debt. This process is known as a consumer proposal, and it provides you with the same legal protections as a personal bankruptcy.

If the majority of your creditors agree with the consumer proposal, the consumer proposal is binding on all creditors. Even creditors that did not agree with the consumer proposal.

A consumer proposal can provide for a fixed monthly payment, which will not increase if your income goes up. A consumer proposal can allow you to maintain control over your assets. Such as your house, vehicles, RESPs, and RRSPs, and you get to keep your income tax refunds.  

The structure of the consumer proposal can be creative or as simple as fixed monthly payments. You could sell an asset and pay a portion of the sale price to your consumer proposal. The Trustee will help you craft a consumer proposal that suits your situation.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

  • You won’t be stuck in an assembly line process.

  • You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

  • We will review your debt solution options, including filing a consumer proposal or personal bankruptcy.

  • We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint JohnMonctonFrederictonCharlottetownDartmouth, or Miramichi.