Moncton

Q: : How much debt must you have for a consumer proposal?

: You must have at least $1,000 worth of unsecured debt to qualify for a consumer proposal in Canada. Unsecured debt is debt that is not backed by an asset. Examples of unsecured debt include credit card debt, personal loans, student loans, most tax debt, payday loans.

Q: : Do most consumer proposals get accepted?

: The overwhelming majority of consumer proposals made by our Licensed Insolvency Trustees are accepted. Our trustees take great care in crafting each proposal to ensure that it meets your needs, and they don’t file any proposal unless they believe it will be accepted.

Q: : How much do you pay for a consumer proposal or bankruptcy?

: The cost of both a consumer proposal and bankruptcy varies depending on the situation of each person. It’s important to note that only a Licensed Insolvency Trustee can file a consumer proposal or bankruptcy on your behalf. The initial consultation with a BDO Licensed Insolvency Trustee is entirely free.

Q: : What is debt consolidation and how does it help with debt?

: Debt Consolidation is a way of simplifying your debt repayment. With it, all of your debts are combined into one monthly payment with a single interest rate. That interest rate is often lower than that of a credit card, saving you money long-term on your payment.

Q: : What are the cons of debt consolidation?

: Debt consolidation is a great option if you want to save money on interest from multiple bills and simplify your payments each month. It isn’t the best option for everyone though.

Q: : What types of debt can be consolidated?

: Most types of unsecured debt can be consolidated. Unsecured debt is a debt that is not back by an asset as collateral. Your credit card for example, is an unsecured debt, your mortgage debt, because it is backed by your house, isn’t.

Q: : How does a consumer proposal work?

: A consumer proposal is a legal agreement between you and your creditors where you agree to pay a percentage of your debt back and the rest of it is forgiven. A consumer proposal can lower the amount you owe by up to 80%. It also often greatly reduces your monthly payments.

Q: : What happens during a bankruptcy?

: Bankruptcy releases you from most, if not all, of your debts. You may be required to sell assets, but contrary to popular belief, most people keep their homes and their vehicles after declaring bankruptcy.

How professional debt relief can stop debt collectors and legal action against you

One of the biggest stressors of having too much debt is dealing with collection agencies.

When a “Bankruptcy Trustee” or a Licensed Insolvency Trustee (they mean the same thing) files a bankruptcy or consumer proposal on your behalf, a stay of proceedings is issued to all your creditors.

A stay of proceedings is a legal order that stops debt collectors from contacting you for money owed, and it is automatically instated after a consumer proposal or bankruptcy is filed on your behalf. It also stops most legal proceedings against you and prevents your wages from being garnished.

FAQ

A consumer proposal is a legal agreement between you and your creditors where you agree to pay a percentage of your debt back and the rest of it is forgiven. A consumer proposal can lower the amount you owe by up to 80%. It also often greatly reduces your monthly payments.

Our Trustees take the time to speak with you and fully assess your situation before filing a proposal so that it meets your needs as well.

Only a Licensed Insolvency Trustee is allowed to negotiate with your creditors and file a consumer proposal on your behalf. The first consultation with one of our Trustees is free.

You must have at least $1,000 worth of unsecured debt to qualify for a consumer proposal in Canada. Unsecured debt is debt that is not backed by an asset.

Examples of unsecured debt include:

credit card debt
personal loans
student loans
most tax debt
payday loans

The overwhelming majority of consumer proposals made by our Licensed Insolvency Trustees are accepted. Our trustees take great care in crafting each proposal to ensure that it meets your needs, and they don’t file any proposal unless they believe it will be accepted.

Our trustees will take the time to get to know you and your situation before reaching out to your creditors so they can craft a proposal that meets your needs as well.

The cost of both a consumer proposal and bankruptcy varies depending on the situation of each person. It’s important to note that only a Licensed Insolvency Trustee can file a consumer proposal or bankruptcy on your behalf. The initial consultation with a BDO Licensed Insolvency Trustee is entirely free.

Licensed Insolvency Trustees operate under the Bankruptcy and Insolvency Act of Canada, with their fees regulated by the Office of the Superintendent of Bankruptcy.

Bankruptcy releases you from most, if not all, of your debts. You may be required to sell assets, but contrary to popular belief, most people keep their homes and their vehicles after declaring bankruptcy. For a first-time bankruptcy that has zero excess income payments, it will last for at least 9 months.

However, if someone has surplus income payments they must make, the bankruptcy will last at least 21 months. It is possible for the court to order the bankruptcy to last longer though.

Debt Consolidation is a way of simplifying your debt repayment. With it, all of your debts are combined into one monthly payment with a single interest rate. That interest rate is often lower than that of a credit card, saving you money long-term on your payment.

Paying your bills on time each month and in full after getting a debt consolidation loan can also help to improve your credit score in the long run as well.

Debt consolidation is a great option if you want to save money on interest from multiple bills and simplify your payments each month. It isn’t the best option for everyone though. Firstly, it can be difficult to be approved for a debt consolidation loan if you have a low credit score.

Another drawback of debt consolidation is it does not reduce how much money you have to pay back. Debt consolidation is only meant to save money on interest and combine multiple bills into one easy payment each month. It does not remove any of your overall debt.

Most types of unsecured debt can be consolidated. Unsecured debt is a debt that is not back by an asset as collateral. Your credit card for example, is an unsecured debt, your mortgage debt, because it is backed by your house, isn’t.

This means that many different kinds of debts can be part of debt consolidation. These include, and are not limited to: credit card debt, personal loans, utility bills, student loans, and medical bills. Because this only covers unsecured debts you cannot consolidate your mortgage debt as part of debt consolidation.

How we've helped

Our clients say it best. Hear from people we've helped about their financial recovery journey and their experiences with BDO.

“

I really can't thank you enough. You really are amazing at what you do and thank you so much for your time and patience with me.

A.V.

New Brunswick

BDO guided me through a difficult time in my life, step by step, with all of the information I needed to make informed decisions about my financial situation. Bankruptcy is a stressful experience, but BDO provided the information I needed to get things back on track, answering all my questions along the way. I’m in a much better financial situation now and have learned new skills to better manage my money.

Michelle

I want to take this opportunity to thank BDO for helping to pull me out of a desperate situation and bring me back into alignment with my financial matters. I have learned a lot from this experience and appreciate your compassion and support.

Stephanie