November 11th, 2014 by Questions
If loans have been called in but I can now pay them off can I avoid having to declare bankruptcy or go through a consumer protection plan?
Posted from: Alberta
November 11, 2014 at 10:45 am, Desmond West-Chow, CIRP said:
It depends where your creditors are at in terms of collecting on the debt and what you’re able to pay. If you can satisfy the terms that they are seeking (for example, paying off in full immediately, making monthly payments, etc.) then you can certainly make arrangements with your creditors to settle that debt on your own. If your creditors have a garnishment order, then it may be more difficult to work with them, as they really don’t have much incentive to accept anything less than what their garnishment order allows them to collect. One of the key parts of a bankruptcy or consumer proposal, is the protection from your creditors (called the stay of proceedings). If you can satisfy paying your creditors exactly what they’re requesting, then this protection may not be needed. If however, they are asking for more than you can afford to pay or they are taking legal action, then you likely find that the protection associated with a consumer proposal may be necessary.
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