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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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debt settlement

I filed a CP in Ontario a few weeks ago. If it`s rejected, can I apply for a Debt Settlement program? I was never told of this by my credit counsellor. I owe approximately $35,000 in loans/cards. Also, where would I go to do this?

Posted from: Ontario

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One Response to “debt settlement”

A licensed trustee said...

You’ve hit on a couple of important questions.

First, if a creditor votes against your CP they usually suggest alternate terms that they will agree to. It’s only if no agreement can be reached that a proposal is rejected. In our practice that doesn’t happen very often because we won’t allow clients to file a proposal that we do not think will be accepted.

Secdon, if it is rejected you certainly have th eright to file a debt settlement program and depending on where you live in Ontario, you should have a couple of options as to who to use for this. We refer clients to In Charge Canada, a not for profit, but there are many agencies offering the service theses days.

Third, the trustee you actually fi9led the proposla with should have reviewed with you debt settlement plans as an alternative BEFORE you filed. If it is in the first 60 days since you filed you have the right to withdraw the proposal and file a debt settlement if that’s what you really want to do.

Fourth. From the phrasing of your question I suspect you saw a debt consultant, not a credit counselor before you filed – of course they may have called themself a credit counselor, but really all they wanted to do was charge you a fee to refer you to a trustee. For other people reading this site, in my opinion debt consultants add very little value for the fee they charge – the service they provide is provided by trustee’s for free. You’re paying for someone to tell you to call a trustee…