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....

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.

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.

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.

The process by which a person voluntarily places themselves in Bankruptcy. Most bankruptcies in Canada are voluntary.

A person who has taken possession pursuant to a security agreement of substantially all of the inventory, accounts receivables or the other property of the debtor. “Receiver” also includes a person who has been appointed privately pursuant to a security agreement or by an order of the court for the protection or collection of property that is the subject of diverse claims, usually to seize and sell the property of the debtor. Registrar An Officer...

The command of a Court or Judge.

The Official Receiver is a federal government employee in the Office of the Superintendent of Bankruptcy. The Official Receiver, among other things, accepts the documents that are filed in proposals and bankruptcies, examines bankrupts under oath and chairs meetings of creditors, if such meetings are held.