Category: Consumer Proposal

Bankruptcy Help Choices

You are in debt and do not know what to do or who to speak to. In years gone by there would be a father or uncle to speak to. Today there is the internet. The trouble with the internet is it generates too much information and usually cannot answer all of your specific questions. Generally, there are informal or formal arrangements that can be made with your creditors.

Informal  arrangements are offered by debt management companies, credit counselling services and some financial services companies. They will consolidate all of your monthly payments into a single payment. They will try to lower the monthly interest charges and will attempt to reduce the principal of your debts. The downside is that not all creditors will agree to do anything other than accept the payment from your debt management provider.  In other words, your creditors accept the payments but do not agree to reduce the interest or principal amount of your debt.  A written agreement must be made with each creditor as to what the creditor is agreeing to.  The last thing you need to hear is that the interest charges are still being charged during your “debt program.”

A consumer proposal  is an option when you wish to stop the interest from your creditors and reduce the outstanding principal of  your total debt. A Trustee in Bankruptcy licensed by  the Federal Government is the only person who can file a Consumer Proposal on your behalf with your creditors. The trustee will work with you to prepare a budget which will determine what you can afford to pay. The trustee will prepare all of the papers and negotiate a reasonable settlement with all of your creditors.  The negotiation is done with all your creditors as a group, the majority of which binds the entire group.

If you own a house that has equity in it, your trustee can also assist in dealing with a mortgage broker to fund a payment to high interest credit cards and reduce your monthly minimum payments using a debt consolidation plan. As a last resort there is always the bankruptcy option which the Trustee in Bankruptcy can also explain to you. There are many options for you to consider before you choose what is best for you. The first meeting with any of our staff is always free and always confidential.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.