If you have uncontrollable debt levels in your life, either a consumer proposal or bankruptcy might be the option. Nevertheless, it is vital to realize that a Licensed Insolvency Trustee (LIT) administers both. To decide which choice is right for you and walk you through the process, you must contact a Licensed Insolvency Trustee. Here is the list of five questions to ask before choosing a trustee. Does the Federal Government license you? The answer should be “Yes,” as the Federal Government licenses all the trustees in Canada. You should confirm that you are dealing with a Licensed Insolvency ..read more

The consumer proposal might be an ideal way to overcome your debt, but it can damage your credit ratings. Your credit score is closely connected to your credit report since the report contains all your missed or late payments. However, it is deleted from your credit reports three years after paying off all your debts according to the proposal or six years after it was filed, whichever comes first. What is a credit rating/credit report? A credit rating assesses how well they fulfill their financial commitments according to a person’s payment history and present debt status. One of Canada’s larg ..read more

Navigating the path toward financial stability involves making informed decisions, and two significant options to consider are bankruptcy and consumer proposals. Both avenues provide a way out of debt and offer distinct asset management approaches. When it comes to tax refunds, a crucial aspect of your financial picture, understanding how bankruptcy and consumer proposals handle them is essential. Exploring Tax Refunds in Different Scenarios Tax Refunds in Bankruptcy In the context of bankruptcy in Canada, a tax refund is categorized as an asset. This means that any expected tax refund for the ..read more

The uncontrollable personal debt problems are always a trap for Canadians. In certain circumstances, bankruptcy might be the only option to recover from your debt problems and start your financial life afresh. But when proceeding with bankruptcy, you need the support of a Trustee to monitor the whole process. When researching various possibilities, you might have noticed that the term “Licensed Insolvency Trustee” has been used instead of the more traditional “Bankruptcy Trustee” in recent years. Let us now glance at the difference between these two terms and the role of a Trustee in solving y ..read more

Are you considering cancelling a consumer proposal? You may have changed your mind about pursuing debt relief through this method or want to explore other options. Whatever the reason, it’s essential to understand the implications of cancelling a consumer proposal before making any decisions. This article will delve into the details of withdrawing a consumer proposal. Understanding Consumer Proposals Before diving into the specifics of cancellation, let’s first define a consumer proposal. A consumer proposal is a legal agreement between you (the debtor) and your creditors that allows you to re ..read more

We frequently see customers with credit card debts and other unsecured debts like car loans. Many debtors own a car or truck when they file for bankruptcy. While the threat of bankruptcy is stark on its own, not having your own transport can derail your plans of achieving solvency. What you could be investing into monthly debt payments will go towards your public transportation costs, and we all know that can get expensive and inconvenient.  On the other hand, you should cut your losses and start afresh, including letting go of your exorbitant car payments. Whatever the reason, this guide ..read more

In the bustling provinces of Canada, financial challenges are not uncommon. One of the prevalent issues people face is the threat of eviction due to rent arrears. The question arises: Can filing a consumer proposal in Ontario or undergoing a debt consolidation plan halt the eviction process? Let’s delve into this subject. The Power of Bankruptcy & Consumer Proposal Both bankruptcy and consumer proposals come with an automatic stay of proceeding. This provision is a lifeline for those on the brink of eviction due to rent arrears. The Bankruptcy & Insolvency Act, through subsections 84.2 ..read more

In Canada, a consumer proposal is a judicial debt settlement agreed with creditors to reduce your debt, administered by a Licensed Insolvency Trustee. The consumer proposal must be paid within five years or less with the help of monthly payments. Being a great alternative to bankruptcy, a consumer proposal enables you to keep your bank assets. Multiple Consumer Proposals Legally there is no limitation to how many consumer proposals you can file in Canada as long as you qualify for the same. Unlike bankruptcy, there are no compulsory limitations in terms of time or cost either for a consumer p ..read more

A Consumer Proposal is a legally binding choice to forgive the debt, in which you give back a portion of what you owe to your creditors without paying any interest. Only Licensed Insolvency Trustees (LITs) can administer Consumer Proposals, and they conduct any negotiations involving you and your creditors. The final agreed amount has to be paid back over a period as long as five years. Also, the creditors cannot proceed with phone calls, threats, and other legal actions as soon as you file a Consumer Proposal. Does a Consumer Proposal Affect Your Credit Reports? A Consumer Proposal affects yo ..read more

All debts are the same. But, as the debts can have positive or negative consequences, they are commonly classified as good debt or bad debt. Choosing whether a debt is good or bad depends on an individual’s financial situation, including how much they can afford to lose. If debt raises your net worth or has some future value, it is good debt, whereas if debt does not increase your net worth and you do not have the cash to pay for it, it is bad debt. Good Debt Good debt improves your financial situation by helping you handle your finances more effectively, leverage your wealth, buy things you r ..read more