Canada Credit Relief of Winnipeg, MB offers an array of debt consulting programs like debt pooling, online debt management strategy, credit card debt counselling and debt solution programs that’s tailor made to keep your family’s future secured and free from tax debt bankruptcy. We are rated among the best debt consultants in Canada as our services assure you an easy way out of credit card debts and counsel you to get the best policy out of your debt management program that would solve your debt problems.
i) Debt Pooling
Our debt pooling program allows debtors to repay debts within a time frame most suitable to them, as we have a one-monthly payment that fits into their current budget.
We have established agreements with over 1100 creditors that provide an opportunity for debtors to repay their principal over an extended period of time at a reduced or 0% interest rate. It is an informal arrangement as it is not part of the Bankruptcy and Insolvency Act. Our Credit Counsellors provide assistance to you in paying off your debt and rebuilding your credit rating.
We are licensed by The Manitoba Government as a Debt Repayment Agency to act on behalf of the Debtor. Since the program is not a court ordered option like an Orderly Payment of Debt, Consumer Proposals or Bankruptcy, we have a lot of flexibility.
Some of the advantages of our consolidation program follow:
ii) Consumer Proposals
This legislated option allows the debtor to make a proposal to their creditors through an officer of the court, essentially reducing the amount principal that is required to be repaid on the debt(s).
A proposal works well with debtors who have surplus income, or some ability to pay back a percentage of their debt. There are two different types of proposals, which can be tailored to almost any debtor’s needs, and are only limited by the creative drafting of the court officer and the debtor and/or their representative.
Upon acceptance, this option is guaranteed to eliminate any further interest charges on the debts, and the debtor is subject to a monthly payment for a period of time, that usually ranges from 1 – 5 years. The amount of money offered in the proposal will basically depend on the manner in which the debtor is structured with their assets, their current and potential future income, and the court officer undertaking the file.
Our objective is to work with the debtor to make the proposal as lean as possible, yet still acceptable to the creditors. An analysis of the proposal is always compared to the dividend the creditor(s) would receive in a bankruptcy.
In order to settle debt for less than the principal amount owed, a lump sum of money is mandatory. In most instances, this is not practical, but on occasion funds are realizable. The debtor may have resources available for procuring funds, and these options should be explored by the consultant.
Any settlement reached on behalf of a debtor during negotiations should be fully documented. The debtor will be given a release by the creditor, pending final payment. It is useful to obtain the creditor’s consent to update the local credit bureau that the claim has been resolved. This often facilitates the debtor obtaining credit in the future.
As a general statement, with 50% of claims, the creditor will settle for 50% of the claim. Most creditors will settle for less than the claim, given creditors have often “written down” an amount that has gone to a formal collection process or litigation, and face the following:
Bankruptcy is looked at as the last resort for a debtor, but from a pure financial perspective, this is the best option for the debtor, and any other option a debtor exercises, has to generate a better return for the creditor in order to gain their approval. However, most often the debtor has moral or ethical concerns about making an assignment into bankruptcy.
It is our objective to dismiss any invalid objections, in order to allow the debtor to be better able to take care of themselves and their family financially. In many instances, the debtor has become a burden to our health and legal systems, and by restructuring them, we actually allow them to become productive to society once again. This action allows the creditor to clean up the mistakes they have made in their lending practices, and save themselves the administrative costs of any further collection practices.