FAQ’s

There are several debt relief options available, including debt consolidation, debt settlement, consumer proposals, and bankruptcy. Each option has its advantages and considerations based on individual financial situations. Debt consolidation combines multiple debts into a single monthly payment, often with lower interest rates. Debt settlement involves negotiating with creditors to settle debts for less than the full amount owed. Consumer proposals allow you to make a formal offer to creditors to pay back a portion of your debts over a set period. Bankruptcy provides legal protection from creditors and allows for the discharge of certain debts, but it has long-term consequences.

The best debt relief option depends on various factors such as the type and amount of debt, income level, and personal financial goals. Consulting with a reputable debt counselor or financial advisor can help you determine the most suitable solution for your circumstances. They can assess your financial situation, discuss the pros and cons of each option, and help you develop a customized plan to achieve your debt relief goals.

Entering a debt relief program may have an impact on your credit score in the short term. However, successfully completing a program can help improve your credit score over time by demonstrating responsible financial management. During the program, missed payments and debt settlements may appear on your credit report, potentially lowering your score. However, as you repay your debts and demonstrate positive financial behavior, your credit score can gradually recover.

While enrolled in a debt relief program, collection calls and letters may continue initially. However, reputable debt relief companies can help communicate with creditors on your behalf to minimize collection activities as you progress through the program. Once creditors are aware that you're enrolled in a debt relief program and actively working to repay your debts, they may be more willing to work with you and reduce collection efforts. Additionally, some debt relief programs offer legal protections that can help stop collection calls and harassment.

Consumer proposals typically cover unsecured debts such as credit card balances, personal loans, lines of credit, and certain types of tax debts. Secured debts such as mortgages and car loans are not eligible for inclusion in a consumer proposal. A consumer proposal allows you to make a formal offer to creditors to settle your unsecured debts for less than the full amount owed. If creditors representing the majority of your total debt accept the proposal, it becomes legally binding for all creditors, providing relief from overwhelming debt.

Yes, there are alternatives to bankruptcy, such as debt consolidation, debt settlement, and consumer proposals. These options provide opportunities to restructure or reduce debts while avoiding the long-term consequences of bankruptcy. Consulting with a financial professional can help you explore the best alternative for your situation. Debt consolidation combines multiple debts into a single monthly payment with lower interest rates, making it easier to manage your finances and repay your debts over time. Debt settlement involves negotiating with creditors to settle your debts for less than the full amount owed, potentially saving you money and helping you become debt-free faster. A consumer proposal allows you to make a formal offer to your creditors to settle your debts for less than the full amount owed, providing relief from overwhelming debt without the need for bankruptcy. Your financial advisor can help you evaluate these options and choose the best one based on your financial situation and goals.