Under the Bankruptcy and Insolvency Act, you may make a proposal or compromise to your creditors. This usually is a cents on the dollar compromise. Your offer maybe to compromise the total amount you owe your creditors or extend the time you have to pay your debts in full. Instead of monthly payments to your creditors, you could also offer to cash in certain assets to pay a portion or all of the debts. A Trustee in Bankruptcy will assist you in making a fair offer to your creditors. The filing of the proposal stops unwanted calls from creditors, stops your wages from being garnished, and allows you time to make arrangements to pay your creditors what you can afford.
In order to qualify for a consumer proposal you must owe less than $75,000 not counting mortgages registered against your principal residence.
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Stephen Boale is a member of the Canadian Association of Insolvency and Restructuring Professionals ("CAIRP"), a licenced Trustee in Bankruptcy and a Certified General Accountant. Before joining Boale, Wood & Company Ltd., Stephen spent ten years practicing exclusively on insolvency matters with a big four chartered accountancy firm, and was previously an Official Receiver with the Office of the Superintendent of Bankruptcy.
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