Informal Proposals

Informal proposals, also known as debt management plans.  These are agreements done with your creditors in order to amend or compromise debt repayments terms.

ABDC Credit Solution can assist you in making an informal proposal to your creditors.  The benefit you can get from this type of proposal is that it will have a lesser affect on your credit rating and will significantly lower the cost compared to a formal proposal under the Bankruptcy and Insolvency Act.

Informal Proposals

Informal Proposals

 The Essence of Informal Proposals

Informal proposals often provide benefits if there’s only one creditor used or several creditors. ABDC will approach your creditors with a reasonable settlement offer with the view to avoiding filing a formal proposal or bankruptcy.

These kinds of proposals are a specialized strategy to cut debt and are not good for everyone. Hence, before you enter any informal negotiations, it is very important that you take time assessing your unique situation to make sure that this strategy for debt restructuring will suit all your needs. The settlements reached with creditors range from 10 percent to over 85 percent and will depend on your financial situation.

To help you understand the whole picture better, you need to know the benefits you can get from an informal proposal. The benefits you can get with Informal Proposals are the following:

  • You can choose the debts when you do some negotiations.
  • You’re not required to file under insolvency and bankruptcy act.
  • Still, you can be a director of any incorporated business or company.
  • Debt settlements are often reported on R7. You can start rebuilding your credit as soon as you want.


An informal proposal is a direct negotiation done with your creditors with the goal of arranging payments that are lower than the total amount you are owed.It is not a typical situation to deal with creditors. It needs to be documented and executed properly. Informal proposals are an effective alternative to consumer proposal or bankruptcy and it is really important to assess your situation properly to help determine the right solutions. If you need help in crafting a good informal proposal, you can call us today and we will guide you through every step of the process.

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