Debt Help

Home  >  your-options

Are You Harassed by Creditors???

Informal Arrangements

This is an arrangement with your creditors on an informal basis, which might include making full payment (or less) of your debts to your creditors over time. This process has the following difficulties:

  • Getting 100% agreement from your creditors
  • There is no binding timetable that forces creditors to decide
  • Creditors may still refuse to be part of the process and still harass you

This process is an act of bankruptcy and could be used by your creditors to request the courts to put you into bankruptcy.

Simplify with Credit Consolidation in Vancouver

When you have multiple credit card balances or debts to pay, it can seem overwhelming. You may find yourself struggling to keep up with monthly payments. With credit consolidation, Vancouver residents can combine or consolidate their debts into one monthly payment. This offers many advantages. One advantage is less stress as you only have one payment to worry about every month instead of many. Another advantage includes a lower interest rate. A disadvantage of credit consolidation in Vancouver is the potential for paying more in the long run since you may need to take longer to pay off this one debt. Be sure to weigh the pros and cons of credit consolidation before making a decision.

Formal Arrangements - Binding By Law

Under the Bankruptcy & Insolvency Act, there is a procedure called a Consumer Proposal which, if passed by your creditors, will bind your creditors and avoid bankruptcy.

The key points to making a formal Consumer Proposal successful are:

  • Obtaining the acceptance of 50% plus 1 creditor, representing over 50% of proven creditor claims. Under a formal Proposal, you do not require 100% acceptance by your creditors.
  • The payment to creditors under a Proposal should be greater than what they would receive from any distribution of your assets or payments out of your income in a bankruptcy.

For further information, see Consumer Proposals.

Bankruptcy - Last Resort!

If there is no chance of making a successful arrangement with your creditors, bankruptcy may be a last resort.

Click here to download a personal bankruptcy/consumer proposal questionnaire.

If you experience difficulty in downloading the file, please email or contact us.