Can Wipe Out Your Debt
Debt Problems Making Your Life Miserable?
The Answers You Need Are Here.
WHAT TO DO IF YOU CAN'T
PAY YOUR BILLS
Creditors will offer you a better deal if they know you are in trouble and might default
The first step in trying to resolve your debt problem is to pick up the phone and contact your creditors and try to work out a payment plan.
Explain your situation and emphasize your willingness to work with the creditor to catch up on your overdue bills.
Use consolidation only if you are able to control your spending. If you can get a consolidation loan, this may solve your problem. However many people who consolidate just run up their credit cards again and are worse off than before the loan.
Credit Counselling services can work out a lower payment plan with your creditors for you. They charge fees despite their touted "non profit" status. The fees are usually hidden and deducted from your payments. Credit counselling plans will take years to pay off your debts.
A Consumer Proposal is a means to negotiate with your creditors for the reduction of your debts and/or extension of time for payment of their debts.
The payment schedule that is created in consultation with a your advisor is based on your income, living expenses and family size.
It prevents your creditors from taking legal actions to seize assets or garnishee wages.
The best way to get detailed information about filing an assignment in bankruptcy or a proposal is to contact a bankruptcy trustee and discuss your options .
There is usually no cost for this and there is no obligation to proceed with bankruptcy.
CanLaw Guide to the Law on Debt for the Layperson
On line Since 1996