Debt Reduction

Debt Reduction Options to reduce debt.

Information for the Debtor/Bankrupt

A debtor is a business or person that is unable to meet debt obligations. A bankrupt is a business or person that has declared bankruptcy.

Both the debtor and bankrupt's primary duties are to:

  • Attend the first meeting of creditors (if a meeting is requested by the creditors)
  • Attend two credit / debt counselling sessions (for bankruptcy and consumer proposals)
  • Advise the trustee in writing of any address changes
  • generally assist the trustee in administering the estate or proposal

Bankruptcy - Sometimes it's your only option

The Truth About Bankruptcy and Debt Consolidation

Often we are faced with towering debts that may appear unconquerable. And often times still, the challenge may be just that. Circumstances for financial hardships are as plentiful as the individuals who face them. It is not always a matter of blame. The need for a fresh start may be overwhelming.

There Are Advantages of Credit Counselling Services

In certain situations, credit counseling is the only means to prevent phone calls from collection agencies and dealing with other debt-recovery practices. As with all programs, it is essential to review all available options before deciding on the right one to serve all of your individual needs. Part of a complete review would include a diligent check of the credit-counselor's credibility and more importantly, licensing.

Credit Counseling - How it works

There are no shortages of companies and even "not-for-profit charities" offering their versions of "credit counselling". Generally, the idea of credit counseling is based on the credit-counseling agency taking control of the client's credit accounts and arranging for a new debt repayment plan. The credit counselor would request of the creditors, that based on the financial hardship of the client, they should freeze the interest (or at least reduce it) so that the re-payment of the debts may be accelerated.

The greatest benefit of credit counseling is that the client may no longer have to deal directly with the creditors or their collection agencies.

Consumer Proposal Risks - Will I qualify? -What happens if I'm not accepted?

Among the many risks of filing a consumer proposal are that it could be declined by your creditors. In this event, an R7 orderly payment of debt program would be reflect on the credit bureau, even though it was not approved! Of course if the proposal is approved, the same rating would reflect. It will drop off the public records within 3 years of the last payment of the consumer proposal. Until this time, obtaining unsecured credit will be virtually impossible.

Advantages of Filing a Consumer Proposal - Principal Debt Reduction!

There are some great advantages to filing a consumer proposal including:

  • Reduced Principal Debt - not just interest reduction
  • Lower overall monthly payments - and the amount you pay back is Interest Free!
  • Stop all Collection and Creditor Calls - stop the harassment by bill collectors

Consumer Proposal - What is it? Is it an option for me?

A dynamic and effective alternative to bankruptcy, but still with many of the restrictions of an R7 Orderly Payment of Debt prgram.

A Consumer Proposal is, essentially, a request to the client's creditors to reduce to total amount of all unsecured debt to an interest free amount. The request for the reduction would also include a term which would specify in how many months the reduced amount will be repaid. Once the consumer proposal has been submitted to the creditors through the office of a registered trustee, the creditors will review the request and vote on the matter. The creditors have up to 45 days to review the consumer proposal plus up to an additional 15 days in courts administration. During the time of the vote, there is a stay on all of the client's accounts.

Frequently Asked Questions

This is our Frequently Asked Questions Page:

  1. Do I have to walk into your office if I qualify?
    At Canada Debt Settlements, we deal with clients all across Canada via telephone, fax & e-mail. Physically visiting our office is an option of course, but not a necessity.
  1. Is Canada Debt Settlements licensed?
    Proudly licensed by the Ministry of Government and Consumer Services, we realize at Canada Debt Settlements that disclosing personal financial information with anyone in general is definitely not on the top of one's priority list. Simply put, most individuals would rather not discuss their financial hardship unless necessary. We understand it is a very emotional subject and want you to feel completely comfortable when approaching our services. Our clients' funds are fully protected and insured by our Trust Account (Similar to a lawyers) and provincial bonding to ensure that settlements, when approved, are processed efficiently.

Recent Success Stories

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+
Received July 20, 2012 via email

How To Qualify for Debt Settlement in Canada

Always Know Your Options & Rights

Debt Settlement is a fantastic option, Reduce debt with the advantages of canadian debt settlement Greater Toronto Area Markham Ontariowhen it fits the bill and your individual circumstances. While debt-settlement is an inherently flexible program, if you have accounts that are in arrears or currently with a collection agency, Debt Settlement could be an excellent option for you. Not all clients qualify for our services when it comes to Debt Settlement. Debt-settlement is your best option when you have the ability to make partial payment your overdue accounts in a lump-sum. Settlement is a very innovative and efficient option and should be considered as a serious alternative to bankruptcies, consumer proposals and credit counseling.

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Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

Call now for your free no obligation consultation 1-877-475-3939