These days, in Northwestern Ontario, there are two options for debt help in Dryden, Fort Frances, and Thunder Bay. These options are bankruptcy, or a consumer proposal. Both options are only available through Trustees in Bankruptcy.
Trustees in Bankruptcy are individuals and/or companies that are licensed by the Government of Canada to assist individuals and businesses with their debt troubles. This assistance can take many forms, and doesn’t just mean bankruptcy. In many instances, a Trustee in Bankruptcy will work with the consumer debtor to file a consumer proposal, as opposed to a bankruptcy. A consumer proposal is a settlement to creditors to repay less than the full amount of debt owing. This repayment amount can even be as low as 25% of the amount owing. The actual amount in each case will depend on things like income, assets, and debt. Consumer proposals are an excellent tool to help people deal with their debt. And do you know who the only people in Canada licensed to file consumer proposals for people are? Trustees in Bankruptcy! This may seem strange, because a consumer proposal certainly isn’t bankruptcy, but it’s the case. The reason for this is that consumer proposals are a relatively new tool for debt management, whereas the term “Trustee in Bankruptcy” has been around for years. Sometimes though, like in this case, this older term doesn’t fit.
You may come across other entities out there calling themselves “debt management”, “debt solutions” or “life solutions” companies. Don’t be fooled, however. These companies are not legally authorized by the federal government to file consumer proposals. They may eventually direct you to a Trustee in Bankruptcy, who, as noted above, is licensed to do this, but not without taking a hefty “consulting fee” first!
So, if you have questions about your debt, cut out the middle man and contact us directly today.