Debt plan rejected

I recently had a debit on my account that I could not explain. When I investigated, I found that the debit (which amounted to roughly 20% of my monthly earnings) was the result of a garnishment order in effect to repay a $23,000 debt to CIBC Visa.

I contacted mydebtsolution to help resolve this. Mydebtsolution contacted CIBC to propose a debt plan to pay not only the $23,000 debt to VISA but also the $12,000 Personal Line of Credit owing to CIBC (which was up to date). In response, CIBC said it had `no incentive` to agree to such a plan, especially considering that the garnishment order was in effect.

In this case, are there alternatives to declaring bankruptcy? If I close my personal bank account with CIBC, will the garnishment order follow with my new personal bank account?

Thank you for your time.

Posted from: Alberta

One Response to “Debt plan rejected”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

The downside of a debt management plan is it really has no legal authority when dealing with a garnishment. What you will likely have to do is to contact a local trustee and discuss how the filing of a consumer proposal will help you to deal with the existing garnishment and also avoid the filing of a bankruptcy.