Licensed insolvency trustees can provide a number of debt relief services:
Consultation
If you are worried about too much debt and may be afraid that you are headed for bankruptcy, you can meet with a licensed insolvency trustee to help you assess your financial situation. The initial consultation with a trustee is always free. He will ask you pertinent questions and also request to see relevant documents to help him evaluate the extent of your debt problems and to help you determine the best course of action. You may simply need to fix your budget, and the trustee can give you advice on free tools and resources you can use or recommend you to credit counselling sessions that will provide you with some financial skills to enable you to manage your debt load. If the trustee believes you need more help, then he will recommend other solutions for you.
If you recognize that you need to get control of your debts, it’s important that you talk to a licensed professional as soon as possible. Simply talking to someone whom you know can provide the help you need can greatly help ease the burden of debt.
Consumer proposal
If the trustee determines that you have equity in a property or other asset, or you can afford to make fixed monthly payments with your income, he may suggest a consumer proposal. You may hire the trustee to become your Consumer Proposal Administrator and he will negotiate with your creditors to reduce your debts, stop interest charges and arrange for a lower monthly payment. He will handle all proceedings on your behalf, all you have to do is meet monthly payments once your proposal is accepted by the creditors.
Corporate insolvency
More creditors are becoming more flexible in providing options for debt repayment and are now allowing corporations and other businesses to make arrangements or proposals instead of going into bankruptcy.
If your company has accumulated debts and you need to work out a payment plan with your creditors or a refinancing to give the business more time to pay its debts, a Licensed Insolvency Trustee in Oshawa can recommend these debt solutions:
- Informal payment arrangement
- Formal payment arrangement or proposal
- Protection through the Companies’ Creditors Arrangement Act (CCAA),
- Receivership
- Bankruptcy
Personal Bankruptcy
If your debts are greater than the value of everything you own (including assets and income), then your trustee may suggest filing for personal bankruptcy. As with a consumer proposal, the trustee will handle all proceedings on your behalf which will include contacting your creditors, filing all the necessary paperwork, notifying all your creditors, file outstanding tax returns, ensure that you make all your monthly payments and attend your credit counselling sessions until you are successfully discharged.
Contacting an Oshawa licensed insolvency trustee does not automatically mean that you need to file for bankruptcy. When you make an appointment, he will carefully review your situation and discuss with you all the available options. He may see that a bankruptcy is right for you or he may advise you of another solution, either way he will walk you through the pros and cons of each solution and help you choose the most suitable strategy for your circumstances.
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