Canadians are in debt. With high inflation, rising interest rates, expensive housing, and increased spending, it should come as no surprise. If you are struggling with debt and insolvency, reach out to a Licensed Insolvency Trustee for help.
Jerry, age 61, has spent his whole working career in the automotive industry in Chatham-Kent, and never imagined he’d be considering filing bankruptcy. Since the closure of Navistar Trucks in 2011, he has been struggling to make ends meet. He wasn’t able to find a new job after being laid off, and his credit card payments began to fall behind. He started getting collection calls for his utility bills and received a final notice that if he didn’t pay his bill, his power was going to be shut off.
Feeling desperate for a way out of his financial misery, Jerry reached out to us. He asked about filing bankruptcy first, but wanted to know if there was any other solutions out there for him.
Our Licensed Insolvency Trustees Provided Jerry with Debt Solutions
Since 2002, Adamson & Associates’ Licensed Insolvency Trustees have been providing debt solutions to residents of Chatham-Kent. Jerry recalled seeing our sign on Queen street which prompted his initial call to us. When he first met with us, we looked at his current financial situation. He had debts to credit card companies, store credit cards, loans, an overdraft, and an online payday loan company. His bills were all behind, including his cell phone and utility bills.
We went over his options with him to find a way for him to live within his means, and become debt free. He left that appointment with a clear understanding of what he could, and could not do to get rid of his debt.
Debt Options – Bankruptcy, Consumer Proposal, Debt Management Program, and Consolidation Loan
When doing it all on your own, we know it can be overwhelming to figure out which debt option is right for you. Is there any way you could qualify for a consolidation loan? Should you just file bankruptcy and get rid of it all? Are you even able to?
Just as we did with Jerry, our trustees can explain to you all of the debt solutions available to you, and how they will help you in your unique financial situation. Here is a general overview of options that may be available for you:
Bankruptcy is a legal process administered by a Licensed Insolvency Trustee (LIT.) When you file for bankruptcy, you are claiming that you are insolvent, which means that you are unable to pay your debts.
If you say you are insolvent, a trustee will take a look at your income, your assets and your expenses to ensure this is truly the case – that you have no way to pay your debts back. You can then file for bankruptcy and repay none, or just a small portion of your debts, and the rest will be written off by your creditors.
Your trustee will help you to move forward with the process if you feel bankruptcy is the best solution for you.
A Consumer Proposal satisfies your creditors by repaying a portion of your debt back over a longer period of time, and in turn your creditors write off the remainder. Your trustee will negotiate a reduction of your debt and create a debt repayment plan that you, your creditors, and the bankruptcy court agree to. Consumer proposals are usually monthly payments over 2 to 3 year terms, but have a maximum of 5 years if you need. A Licensed Insolvency Trustee is the only one able to administer Consumer Proposals and bankruptcies.
Debt Management Program through Credit Counselling
A debt management program is a debt repayment plan offered by credit counsellors. You will repay 100% of your debt back over a maximum of 5 years, with a reduction in your interest. Your trustee will be able to advise you on what this could look like for you, what fees you would pay, and if it is a solution that will truly work for you.
A consolidation loan is a loan offered through a major bank or credit union that combines multiple debts into one. Usually, financial institutions will only consolidate their own debts into one loan. They often don’t want to take on the “risk” of paying off another financial institution’s debt.
If you haven’t yet applied for a consolidation loan, your trustee will suggest this if it seems like a viable solution for your financial situation.
Chatham-Kent Trustees are Ready to Help You
Jerry reviewed his options thoroughly with his trustee, and made the decision to file bankruptcy and have a fresh start. This way he only had to worry about his necessities every month – his housing costs and utilities, his food, his clothing and a little entertainment. He didn’t have to receive endless collection calls anymore, asking for money he didn’t have.
If you’d like to find out what options you have, please contact us. Both day and evening appointments are available if you’re considering filing bankruptcy in Chatham-Kent, or would like to learn your options to become debt-free once and for all.
*names have been changed