Debts and what can we do about them?
It’s not a secret that capitalism we’re living in is based on the movement of a few main flows: financial, trade and service. Of course well-balanced financial flow is the main factor in our economy. Today we know what the reason of the economy crisis was. Production contraction, consumption stimulation in the developed countries, especially in the USA, massive stock exchange speculation, and irresponsible policy of real estate financing etc. The population got used to wasting money because of low-interest loans. And everything was fine before the crisis: the USA Gross National Product started getting smaller, property became cheaper, people lost their jobs. And, of course, it all influenced Canada.
Today a lot of people are in a difficult situation when their expenses are bigger than income. Their debts are growing day by day. They have to use their credit line to pay for the mortgage and make only interest payments on their credit cards. Then collectors start calling threatening with garnishment. Thank God if you don’t have these problems, and we hope you never will. But if it happened, if you couldn’t control your expenses and got into trouble of partial loss of property and your debts are growing – it’s not the end of the world. Fortunately, the citizens of Canada have an opportunity to solve this problem using the Bankruptcy and Insolvency Act, the civilized way of compromises between creditors and debtors.
The most effective ways of solving thedebts problem are:
- Consumer Proposal.
- Debt Consolidation.
According to it, a debtor can ask creditors of debt cancellation, terms of payment extension or even both. The main advantage of Consumer Proposal is the possibility to cancel a part of your debts(55% – 75%, it depends on every single case) without filing for bankruptcy. You won’t lose your house, car or business. The standard term of payment is 60 months, but you can do it faster, if it’s possible.
According to Canada Bankruptcy and Insolvency Act and the Ontario Execution Act there is the way out for people in financial crisis when they want to start a new life without debts. Who can file for bankruptcy? An adult person with a debt at least $1,000 who can’t pay it. Usually, the bankruptcy process takes 9 months, and if it’s your first bankruptcy and you did everything right, then you may get back your previous status. There is also a possibility that you’ll have to go to a court…
It is a personal loan, usually in a bank, that allows reducing the interest payments by the way of all the debts consolidation for a lower percentage. This procedure can’t solve the problem at all, it just prolongs “agony”. Your debt isn’t getting smaller, instead you have monthly payments and you have to meet the bank criteria to get this loan…
We thank everyone who trusts us their financial problems solutions. We’ll work with you from the beginning till the end, we’ll protect you from creditors, collectors, courts and unreasonable Trustee demands. We can make the bankruptcy and proposal procedure easier for you and reduce your monthly payments.
If you have any questions or your debt situation troubles you, call A Debt Doctor! We’ll solve all your problems!
Debt Doctor 416-301-7727