I am the sole director of an Ontario Corporation that is deeply in debt, mostly to a single supplier. Are trustees for personal bankruptcy also qualified for corporate bankruptcy? Does a `consumer proposal` also apply to a corporation?
Posted from: Ontario
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Debt Settlement in Canada
What is Debt Settlement ?
Debt settlement is a service in Canada to help individuals who are experiencing financial distress, and is an alternative to bankruptcy.
Debt settlement might be appropriate for you if you meet the following three criteria:
- You are solvent;
- You have more than $10,000 in unsecured consumer debt;
(do not count mortgage loans, car loans or student loans); - You have an income or the ability to raise some money.
Find out if you Qualify for Debt Settlement
For a free no-obligation evaluation by one of our counselors, of solutions that might fit your personal situation, please provide your information in the form below.
A consumer proposal and personal bankruptcy are only available to those who are insolvent—people who cannot pay their bills as they become due.
Debt settlement may be particularly attractive to those with a poor credit rating or individuals who will not be borrowing large sums of money in the next five or six years.
How debt settlement works
You can hire a firm to do debt settlement work on your behalf.
During the first few months you enroll in a debt settlement plan you will not make any payments to selected unsecured consumer creditors. During this initial phase you will be saving money that will be set aside to build your ‘debt settlement fund’. With the passage of time (1) the amount of money in your debt settlement fund will grow and (2) your creditors will become increasingly willing to accept lump sum settlements from you, typically between 30 cents to 50 cents on the dollar when an account has been in default for 24 months to 36 months. After several months your debt settlement firm will contact your creditors and attempt to negotiate very favourable lump sum settlements.
To ask a question about debt settlement in Canada:
- Post an anonymous question about debt settlement to our blog.
- Fill out our debt settlement evaluation form to get an expert's opinion about whether or not debt settlement is the right answer for you.
The latest debt settlement questions, with our experts' responses:
Posted on Monday, July 26, 2010
posted by Questions @ I am panicked as CRA has filed a Writ of Seizure and Sale against my home with land titles. The amount is in dispute and has to do with another person`s tax debt. What does this mean can they seize my home and sell it.
Posted from: Alberta
Posted on Thursday, June 17, 2010
Can a creditor contact my employer prior to having a court order for garnishment of wages. If not, what action can be taken by me if they have contacted my employer without having a court order?
Thank you
Posted from: Ontario
Posted on Monday, March 29, 2010
Which is better to fix the credit faster Consumer Proposal or Debt Settlement? How it effects credit? How long both of these stay on record?
Posted from: Ontario
Posted on Thursday, February 18, 2010
would a debt settlement be better then a consumer proposal. how do i locate a debt arbritator??
Posted from: Ontario
Posted on Sunday, January 24, 2010
My husband co-signed for a loan for a trailer that is now 2 months in default. I know that this is currently affecting his credit rating. My questions are; 1) Do we have a legal right to try and sell this thing before it destroys his credit? and 2) If not, and […]
Posted on Tuesday, December 29, 2009
What are the typical fees debt settlement firms charge for their service?
Does a debt settlement firm have to be lisenced to act on your behalf?
Posted from: Ontario
Posted on Thursday, December 17, 2009
if i have a car loan and cant pay it. so if i dont pay what will happen. ? i make about 1600.00 a month which is eaten up from bills my car payment is 300.00 a month
Posted from: Ontario
Posted on Wednesday, December 9, 2009
I entered into a voluntary repossession agreement with the leasing company of my vehicle. I was told by the leasor that the vehicle would be accepted back, it would be sold, and then I could be liable for any loss. Is this true? In BC the law is sieze or sue is […]
Posted on Monday, November 30, 2009
I seen a similar question to mine but have something to add. I recently had my jeep removed because they decided to seize not sue I was a few payments behind and the interest and payments were very high. Now I just received a letter saying I might have to pay a disposition or may […]
Posted on Saturday, November 28, 2009
