As Canadians finances are continuously under pressure, more are choosing to file a Consumer Proposal…
Are you starting to become overwhelmed by mounting debts? Maybe the collection calls are finally starting to get to you, or you’ve received notice of a garnishment order. Perhaps you’re concerned that bankruptcy is your only option.
If this sounds familiar, the most important thing to know is that it’s never too late to seek debt management help in Ontario.
And the sooner you do, the more options you may have available to you to resolve your debt problems. Bankruptcy does not have to be your only option.
Who can help me with debt management?
In Ontario, there are two legitimate professionals who can help you with your debt problems:
- Non-profit credit counsellors; and
- Licensed Insolvency Trustees.
What is a non-profit credit counsellor?
These experts are members of accredited credit counselling Ontario agencies, created to help individuals experiencing financial difficulties.
What is a Licensed Insolvency Trustee?
Trustees are also qualified to help debtors with a full range of options, including budgeting, money management, credit counseling, debt consolidation, and more.
Which debt help expert should I choose?
This will really depend on what you owe and how much you can afford to pay.
Not-for-profit credit counsellors offer two services:
- Budgeting support (so you can better manage your money); and
- Debt management plans (where you repay 100% of what you owe your creditors over an agreed period of time).
Here’s how a debt management plan (DMP) works.
Your credit counsellor will contact your creditors and negotiate a repayment plan. This may include eliminating any future interest so you can pay back your debt.
The idea is that you’ll finally be able to afford the monthly payments so you don’t fall behind further.
Once accepted by your creditors, you make the agreed upon monthly payments to your counsellor, who then disburses them to your creditors.
This option is most suitable for debtors with five or less creditors and under $15,000 in debt.
Keep in mind that a DMP is not a legal procedure. Your creditors voluntarily agree to it. It isn’t binding on all creditors and it doesn’t provide you any immediate protection from creditors. It won’t stop any wage garnishments, lawsuits that have been committed and won’t settle any type of government debt.
But what about Licensed Insolvency Trustees?
Licensed Insolvency Trustees offer a variety of services, and in particular, something similar to debt management plans. Trustees can negotiate debts with creditors through a Consumer Proposal. Unlike DMPs, a Consumer Proposal is a legal process.
A Consumer Proposal:
- Immediately provides you protection from creditors, stopping all garnishments, lawsuits and other collection efforts against you.
- Is binding on all creditors, once approved.
- Allows you to repay only a portion of the total unsecured debt you owe.
- Includes other debts, such as those owing to the Canada Revenue Agency.
A Consumer Proposal is best suited for debtors who cannot repay the entirety of their debt, have several creditors, or need immediate protection from those creditors.
But it’s not just insolvencies that trustees handle.
In your initial, free consultation, a trustee will assess your current financial situation and give you detailed information about the pros and cons of every single debt relief option available to you.
You’ll also get personalized advice from the trustee as to which solution may be the best in your circumstances for you and your family.
Find a Licensed Insolvency Trustee Today
If you are looking for debt help services in London Ontario come down to our offices. The sooner you seek help, the more options you’ll have available to you. It may be easier than you think to get yourself back to better financial health. So contact us today for your free consultation.