Different Types of Debt
Abakhan & Associates bankruptcy trustees provide debt relief for all BC residents struggling to pay off their debt. There are a lot of options one can take to reduce or remove their debt all together.
Our trustees have put together a list of common debts and the available options. If you'd like to learn more about a specific debt and your options, please find the page listed below or contact one of our trustees at 604-689-4255 or fill out our online form.
One of the legalities we make sure every client understands is the "seize or sue" law in British Columbia. This law can protect you from having creditors both sue you and seize your vehicle. In most car purchase financing options, they can only do one or the other. This means if you stop making car loan payments and a creditor seizes the car, they can no longer seek to collect more money. On the other hand, if they sue you for your debt amount, they cannot claim your car as well. This is not true of all financing options, so chatting to your trustee or a lawyer about this to get clarity is important.
Credit cards are an unsecured form of revolving debt. They usually come with high interest rates and short grace periods. If you fail to make a payment within the grace period, you'll experience large fees and increasingly expensive interest payments that you can't afford. Once you fall behind on your credit card payments, it's easy to find yourself in a large amount of debt. Visit our credit card debt page to learn about your options.
Most people who buy a home cannot pay the full amount upfront. To cover the expense, they take out a mortgage loan. This long-term financing option is secured against their home. If the homeowner fails to make payments towards their mortgage, the lender may foreclose on their property. Visit our mortgage loan debt page to learn more.
There are two different types of student loans: federal and provincial student loans. The loans are governed by federal law under the Canada Student Loan Act. As tuition increases, the wages for entry level jobs has not, and more and more people are finding themselves with massive student loan debt. Visit our student loan debt page to learn more about student loans and your options.
Many people who have a financial setback turn to payday loans for relief. These short-term lenders generally offer up to $1,000 to cover urgent expenses. Unfortunately, payday loans feature astronomical interest rates, making them one of the most expensive options for borrowing money. Visit our payday loan debt page to learn more.
If you stop making payments on your recreational loans, the bank can repossess and sell your vehicle. Defaulting on your recreational loan has more consequences than repossession. Along with losing your boat or RV, your credit score will take a hit. Visit our recreational loan debt page to learn more about your options.
Running a business takes a lot of time, hard work, and financial help. Sometimes you feel overwhelmed with the endless strain on your business' financial status. If you've used business loans in the past and are struggling to pay them off, you can change things. Visit our business loan debt page to learn more about your options.
Income tax debt results from a balance owing after you have filed your tax return. Canada Revenue Agency is mandated to collect any balances outstanding and has a lot of power to do so.