Talk to us about which of the following options may be best for you:
In some circumstances, your debt may be consolidated or combined. This means that we may be able to have the repayment time extended and/or the interest rate reduced or eliminated leaving you with one, manageable monthly payment. This can be achieved through various means:
Based on your ability to manage your budget and make payments you may be able to obtain a loan through a bank or lender to pay off your debts. This does not relieve you of your debts; it consolidates them into one manageable payment. Look for lower interest rates. If you use this loan to pay off credits cards, get rid of the credit cards so you won't be tempted to use them. Be aware that a co-signor and/or assets will likely be required as security on the loan.
Depending on the number of creditors and the amount owing to them, it may be possible to negotiate a manageable repayment plan with each of them which extends the time for payment. Be sure to get the agreement in writing.
It is a voluntary payment plan, so it is voluntary on the part of your creditors to accept it. This provides no protection should a creditor choose to continue their action against you. Canada Revenue Agency will not accept these arrangements.
ORDERLY PAYMENT OF DEBTS (ODP)
Offered exclusively by Credit Counselling Services of Alberta, ODP is a consumer repayment program which allows you to repay your debts in full over a period of time. Interest rates are fixed and governed by legislation and most creditors are restricted from taking further collection action or proceedings against you.
PROPOSALS
An alternative to bankruptcy, a Proposal allows you to restructure the terms of your debt or settle for a lower monthly payment that is within your ability to pay. Interest rate is 0%. For example you may propose that you will pay a lower amount each month, but over a longer period of time, or you may propose that your creditors accept a percentage of what you owe.
This option can only be accessed through a licensed Bankruptcy Trustee. The amount you pay will depend on your situation and the amount of money you make. Norrish & Associates Inc. will assist you in determining the amount as well as the terms of the Proposal.
Once the Proposal is filed with the Office of the Superintendent of Bankruptcy, all creditors must cease all collection activity against you. Proposals are legally binding on all creditors once the required majority has accepted its terms. On completion of your proposals terms, your debts are extinguished.
Some obligations such as Child Support and other court fines cannot be included in a Proposal. Norrish & Associates Inc. will discuss any obligations you have that may not be covered under a Proposal and will help you to fully understand the advantages and disadvantages of submitting a Proposal.
BANKRUPTCY
When someone owes more than they have the ability to repay, bankruptcy can be declared. A legal process allowing you a financial "fresh start", bankruptcy is intended to be fair to you and fair to your creditors.
In most cases, when you file for bankruptcy, you are entitled to keep many of the things that you own. Some other assets may be liquidated and the proceeds used to pay your creditors.
Once you have filed for bankruptcy, you will be required to submit a monthly statement of your income and expenses. If your income is over a certain level, you may be expected to make payments into you bankruptcy for a specified period of time.
Filing for bankruptcy also involves attending two mandatory financial counselling sessions and, in limited circumstances, you may be required to attend a meeting of creditors or meet with the Superintendent of Bankruptcy representative.
If it is your first time filing for bankruptcy, you may be automatically discharged from bankruptcy after just nine months if you comply with the terms and obligations such as providing all information related to your property and affairs, and informing your Trustee of any changes in your financial situation during the bankruptcy term. Once you receive your discharge, you will have no further obligations to those creditors. They will write off the unpaid portion of your debt.
Some obligations such as Child Support and other court fines are not discharged by a bankruptcy. Norrish & Associates Inc. will discuss any of these obligations and help you to fully understand the advantages and disadvantages of submitting a Bankruptcy.
CONSULTATION FORMS