Your Options
Debt Consolidation Loan
If you have too many monthly payments, a consolidation loan might help. This is a loan that puts all of your debts together under one lower monthly payment. Generally, if you get a consolidation loan, you should not continue to use your credit cards or borrow from other lenders. If you do, your financial situation may once again become unmanageable.
Informal Arrangements with Creditors
We can review your financial situation with you and advise you on negotiating with your creditors. Reasonable terms of repayment may be the best solution.
Consumer Proposals
If your total debt, excluding your principal residence mortgage, is less than CAN$75,000, you may file a Consumer Proposal. We will assist you in developing a plan which will be presented to your creditors who then vote on whether to accept your proposal. A Consumer Proposal can provide for repayment of less than the full amount of the total debt.
Division 1 Proposals
If your debts exceed CAN$75,000, a Division 1 Proposal may be filed. A Division 1 Proposal may also provide for payment of less than the full amount of the debt. A PricewaterhouseCoopers Inc. professional can assist you in exploring this option.
Under either a Consumer or Division 1 Proposal, consumers are generally protected against garnishment, lease termination, loan accelerations and public utility disconnections. Wage assignments are also unenforceable after filing.
To learn more about bankruptcy and what PwC can do for you, visit Understanding Bankruptcy.
