How can I stop creditors from harassing me?

You basically have 4 options available to you:

How can I stop a wage garnishment?

What if I can't pay my income tax?

My income has shrunk. How can I manage?

How can I stop spending my grocery money on bills?

Am I going to lose everything I own?

How will personal bankruptcy affect my spouse and family?

In general terms, it is an individual that goes bankrupt and not a family. If your spouse has not co-signed for your debts they will not be affected by your bankruptcy except in determining family income available for payment to creditors.

We generally recommend that both spouses come to A.B.D.C to discuss their options together and to explore ways that they can work together to solving their financial difficulties.

Will my financial matters be kept private?

In the case of debt and budget counseling and informal arrangements and negotiations on your behalf with creditors, the information supplied to us remains confidential and will only be disclosed to others with your permission. In the case of you filing a Consumer Proposal or an Assignment in Bankruptcy, the Office of the Superintendent of Bankruptcy will maintain a record. In most cases there won't be any ad published in the local newspaper.

What are my options?

We hope the information you found here answered your questions and your concerns. You have a number of options now that you have visited our web site. For complete information and to answer your questions thoroughly, we encourage you to contact your A.B.D.C office, request a call, or use our application form.

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• Consumer Proposal
• Bankruptcy

Who can make a Consumer Proposal?
To qualify to make a Consumer Proposal you must owe between $1,000 and $75,000 (excluding the mortgages on your house).

If the debts exceed $75,000, there are other provisions of the Bankruptcy Act to deal with these debts. An individual who is already in bankruptcy may make a Consumer Proposal, if the Inspectors, if any, have given their approval.

A joint Consumer Proposal may be filed by two or more individuals if the Consumer Proposal can be reasonably dealt with together because of the financial relationship of those involved (e.g. married couple, common-law partners).

If the creditors reject the Consumer Proposal, you will no longer be protected by the Act and your creditors will again be able to take steps to recover their debts.
You cannot file another Consumer Proposal; however, there may be other alternatives available to you

1.Contact the Trustee and file the Consumer Proposal.
A Trustee is an individual or corporation who is licensed by the Government to administer Proposals. The Trustee will explain the Consumer Proposal process and other alternatives, and will prepare the necessary documents.
Upon filing of the Consumer Proposal with the Superintendent, the Trustee takes over all dealings with creditors. Interest on the amounts owing to the creditors stops accruing at the time of filing the Consumer Proposal.

2.The creditors vote on the acceptance of the Consumer Proposal.
Unsecured creditors will have 45 days to request a meeting to vote on the Consumer Proposal.
If creditors do not respond, they will be considered to have accepted the Consumer Proposal.

3.Unsecured creditors commonly don't request a meeting.
If enough creditors request a meeting, the Trustee will arrange a meeting to vote on whether to accept or reject the Consumer Proposal.
If the Consumer Proposal is not accepted, you will have to consider other alternatives

4. Make payments to the Trustee, who in turn makes payments to the creditors.
Once the Consumer Proposal is accepted, you will make the payments to the Trustee, as provided for in the Consumer Proposal.
This may involve a one-time lump sum payment or monthly payments for a period of up to five years or both.
"Dividend" payments will be made by the Trustee to the creditors. If you default in your payments, the Consumer Proposal will be annulled.

5.Attend counseling sessions as required. The Trustee will arrange for two counseling sessions during the Consumer Proposal.
The counseling will help you understand the cause(s) of your financial difficulty, which sometimes is non-budgetary.
These sessions will also provide information to help you manage your financial affairs.
You must attend both of the counseling sessions.

6. Complete your payments.
Once the payments are completed and two counseling sessions have been attended, the Trustee issues a certificate which shows that the terms of the Consumer Proposal have been completed.
Any balance still owing to the unsecured creditors from the original date of the Proposal is legally forgiven.

What happens if my circumstances change?
You are required to advise the Trustee of any changes in your circumstances that could jeopardize your ability to make the payments required under the Consumer Proposal.
However, this will not change the amounts to be paid.

The Consumer Proposal will be in default if:
• three monthly payments have been missed, or • you are required to make payments less frequently than monthly and you miss any payment for more than three months. In these cases, creditors will again be able to take steps to recover their debts, less any payments paid to them during the Consumer Proposal.

If a creditor has a lien on any assets (known as a secured creditor), they are not usually bound by the Consumer Proposal.
Examples would include a car loan or a loan secured by a lien or furniture.
In such cases, you may wish to do one of the following: surrender your secured asset to the secured creditor and obtain a receipt.
Any balance left due after the asset has been sold by the creditor may be a claim in the Consumer Proposal, depending on Provincial legislation, or make arrangements to continue to pay the secured creditor in order to keep the asset. Consumer Proposals will not cancel the liability if you have guaranteed or co-signed any loans.
You will still be responsible for these debts less any payments the creditor receives from the Consumer Proposal. Once the level of debt has become so great that a Consumer Proposal is required, the credit rating is usually at its lowest.
The ability to obtain and use credit after completion of the Consumer Proposal will depend upon your ability to convince a potential lender of your future personal financial maturity.