You may be struggling with a significant amount of debt that you can’t foresee paying off based on the monthly payments you currently can afford to make.  A free assessment with a Licensed Insolvency Trustee at Taylor Leibow Inc. will review the following debt relief solutions for you to determine which is best for your circumstances:

Debt Consolidation Loan

  • A debt consolidation loan is obtaining one loan from a financial institution to pay off your other unsecured debts. This option allows you to consolidate into one monthly payment at a lower interest rate. Typically, the interest rate of a loan is significantly lower than a credit card (15-29%) or a pay day loan. The issue will be qualifying for a loan (depending on your credit rating and income), and I would not recommend having someone co-sign the loan for you.

Credit Counselling – Debt Consolidation Program

  • If you are unable to handle the monthly payments to all of your creditors on a regular basis, a debt consolidation program through credit counselling may be an option. The agency will negotiate with your creditors to make payment in full over a 4-year time period.  The agency may be able to reduce the interest rate that some of your creditors charge, and you will only make one payment a month.  A debt consolidation program will impact your credit rating for 3 years from the completion of the program.

Consumer Proposal

  • A consumer proposal offers a compromise to your creditors at payment terms you can afford through a Licensed Insolvency Trustee. The proposal terms can be creative – monthly payments, quarterly payments, lump-sum amount, etc.  You must be insolvent, and the proposal must offer to your creditors more than would be available to them in a bankruptcy (or why would they vote to accept it).  A proposal will impact your credit rating for 3 years from completion of the proposal.

Assignment in Bankruptcy

  • In a bankruptcy, the trustee must realize the value of assets (unless secured or exempt) and surplus income payments may be required depending on your family income. A bankruptcy will eliminate the majority of your unsecured debts (excluding support, traffic tickets, etc.) and will remain on your credit rating as a R9 for 6-7 years from your discharge.

We understand no one wants to be in a position where they can’t pay their debt – take the first step to debt relief by calling Taylor Leibow today.

By 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)