For residents of Quebec, there exists the Voluntary Deposit Law (formerly known as the Lacombe Law). You can use a portion of your earnings (as determined by law) to make monthly payments to the Courts. You’ll need to make sure you pay off 100% of your total debt with an annual interest rate of 5%. To learn more about the Voluntary Deposit Law, please contact your local courthouse.

Depending on the amount of debt and number of creditors you have, it may be possible for you to directly contact your creditors and negotiate a lower interest rate or a repayment schedule that works for you. With informal proposals, each of your creditors will expect you to present them with a plan outlining how you can pay them back. You may also be required to submit a sworn statutory declaration outlining all of your assets, debts and income....

Whether you qualify completely depends on the creditor you are contacting and the plan you present to them. Important factors such as the length of the repayment term and the amount of debt you have will impact their decision to accept or decline your proposal.

There are other options for you to resolve your financial issues. These include a Consumer Proposal or Bankruptcy. It is always best to talk to a Licensed Insolvency Trustee to find out which solution is right for you.

There shouldn’t be an initial setup cost for an informal debt settlement. The purpose of an informal debt settlement is to lower the interest rate on your payments and potentially extend the payment period. Additional costs typically result from the accumulated interest charges over a longer repayment period.

An informal debt settlement should be realistic. If your settlement is out of your financial reach you should consider other options to deal with your debt.

It is important to get any arrangement you make with your creditors in writing. While it may not be a legally binding contract, it is a useful document when discussing the termination of your informal debt settlement. If the creditor refuses to reinstate the informal debt settlement, you can file for a Consumer Proposal, which is legally binding when administered by a Licensed Trustee.

Building an emergency fund provides a crucial safety net for unforeseen costs, offering peace of mind during challenging times. Exploring insurance options, such as health and disability coverage, can also provide essential financial protection in the event of illness or injury. Additionally, income replacement plans offer a lifeline for those unable to work due to medical issues, ensuring financial stability during recovery. Moreover, understanding...

Depending on your financial situation, options such as debt consolidation, negotiation with healthcare providers, Bankruptcy, or a Consumer Proposal may be viable solutions. A consultation with a Licensed Insolvency Trustee can help assess your options and determine the best path forward.

The first step in combating debt is to analyze where you are spending your money. If you see a clear way to stop incurring more debt and take action immediately to consistently spend less, you may be able to regain control on your own. However, if your financial troubles persist, an MNP Licensed Insolvency Trustee can discuss different options with you such as Consumer Proposals, Bankruptcy or put you in contact with a Credit Counselling organization...