Formal Debt Settlements through a Bankruptcy Trustee in Ontario

Usually a debtor seeks out a licensed Administrator when they have exhausted all other avenues of dealing with their debt load.

If you have tried at your local bank to consolidate your debt into one loan and have been denied. If you have attempted to approach your friends or family to obtain a short term loan to help you get through and have been disappointed. If you have tried to discuss with your creditors a lower interest rate or a suitable payment plan to retire your debt and have been rejected or misunderstood, then you should contact an Administrator who can help you with a formal debt settlement with your creditors.

Usually those who wish to avoid bankruptcy will consider how their surplus income can be used to settle on a monthly manageable payment plan. If the proposal is accepted then it freezes the interest on your debt, it protects your assets, and stops any creditor from taking legal action to collect (i.e. garnisheeing your wages).

The first step an Administrator at Paddon + Yorke will do to see if you can afford to enter into a formal settlement or proposal (called a Consumer Proposal) is to get a snap shot of what your monthly income and expenses are. The second step would be to analyze a list of your debts. What is the total amount of your unsecured debt (i.e. credit cards, lines of credits, overdue phone bills, unpaid income tax etc.) and what is the total amount of your secured debt (mortgages, financed vehicles, other financed property)? If you have less than $250,000 of debt (not including your principal mortgage) then you qualify for a streamlined debt settlement called a Consumer Proposal. We have had more and more people settle their debts by using a Consumer Proposal ever since the laws changed in September 2009.

You may contact one of our Administrators to see what you could offer your creditors through a Consumer Proposal. We have 14 locations across Ontario where you can book a free consultation. We will complete a financial assessment of your current situation to see if we can help you. You can also send us an e-mail with your contact information and briefly explain your situation in writing. The maximum time allowed to make a reasonable settlement offer through the proposal is five years.

We are located in Barrie, Bracebridge, Brampton, Georgetown, Huntsville, Kirkland Lake, Midland, Milton, Mississauga, New Liskeard, North Bay, Orangeville, Orillia, Parry Sound, and Sudbury.  Help us guide you through filing a Consumer Proposal or personal Bankruptcy.  You can fill out an initial consultation form by clicking here.