This legislated option allows the debtor to make a proposal to their creditors through an officer of the court, essentially reducing the amount principal that is required to be repaid on the debt(s). A proposal works well with debtors who have surplus income, or some ability to pay back a percentage of their debt. Proposals can be tailored to almost any debtor’s needs, and are only limited by the creative drafting of your counselor and their relationship with the court officer. Our objective is to work with the debtor to make the proposal as lean as possible, yet still acceptable to the creditors.
Bankruptcy is looked at as the last resort for a debtor. Any other option a debtor exercises, has to generate a better return for the creditor in order to gain their approval. As part of our review of your financial situation we will explain the guarantee’s relating to your personal property, home, vehicle and any other assets and how they will be affected in a bankruptcy. It is unfortunate, however many people simply do not have the ability to repay their debt and we must explore this option in order to allow the debtor to be better able to take care of themselves and their family financially. This action allows the creditor to clean up the mistakes they have made in their lending practices, and save themselves the administrative costs of any further collection practices.
You can learn more about the pros and cons of bankruptcy at our companion site: avoidabankruptcy.ca
A second mortgage is an additional mortgage charge, registered second, against the title of your property. Your first mortgage payment remains the same and an additional second payment is added. A second mortgage will allow you to obtain a portion of the equity in your home. Use your equity for debt consolidation, settlement or to fund a consumer proposal.
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