The stress of carrying too much debt has no geographical boundaries. Many Canadians have fared well during the pandemic with decreased travel and daycare costs while working from home. Unfortunately, others have suffered financially due to loss of income, caring for family, closure of businesses, and increased food and living costs. Ontario will be entering Step 2 of the re-opening plan next week which gives us hope of some return to “normal”. To deal with overwhelming debt and reduce your stress level to normal, contact Taylor Leibow Inc. to discuss the following debt relief solutions:

  • Debt Consolidation Loan – if one monthly payment at a reduced interest rate would ease your cash flow burden, reach out to your bank for a consolidation loan and pay off your debts. If you have equity in your house, inquire if you are eligible for a second mortgage which will then enable you to pay your other creditors.
  • Debt management program through a not-for-profit credit counselling agency – the agency will negotiate with your creditors to accept payment in full over a four-year time period (with interest) and you will then make one monthly payment to the agency who in turn distributes amongst your creditors. If you can afford your monthly payments but struggle juggling payments to multiple creditors, this solution will ease your stress.  The agency may also be able to negotiate a reduction in the interest charged.
  • Consumer proposal – offering a settlement to your creditors payable over a maximum of five years. The benefits of a proposal are it includes the trustee’s fees to administer the proposal, allows you to keep your assets and stops all interest and collection proceedings by creditors. You must be insolvent to be eligible to file a proposal.
  • Bankruptcy – an assignment in bankruptcy eliminates the majority of debts and stops your creditors from pursuing you for payment. The trustee must realize on any assets that have equity above exemptions and you may have to make surplus income payments depending on your family income and household size.

There are advantages and disadvantages to each of the above debt relief solutions. Contact Taylor Leibow Inc. in Burlington today to discuss the best solution for you to reduce debt stress.

Kathy portraitBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency
and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)