Debt Solutions

Know Your Options

When you are facing financial difficulties it can feel overwhelming. Our expert Trustees at Janes and Noseworthy, Licensed Insolvency Trustees, can walk you through the maze of information on financial management and restructuring. We can help you find the best debt solution for your individual situation.

It is important to understand your options by gathering all of the facts so that you can make the right decision for you and your family. Regardless of which option you choose, it is important to get independent, confidential, expert advice from an experienced professional. Licensed Trustees are the only debt professionals that are qualified to provide a full range of financial solutions regulated by the Federal Government .

Debt Consolidation Loans or Refinancing

Banks and other financial institutions can sometimes refinance most or all debts into one loan. The potential lender makes an assessment of income, credit rating and ability to pay. All debt must be paid in full (plus interest charges) and the cost of such an arrangement can be significant.

Caution should be exercised before entering into such a contract. Interest rates can vary and the lender may require a co-signer and/or that certain assets be pledged as security for such a loan. If payments are missed, the lender could then pursue the third party who “guaranteed” the loan or repossess the pledged assets.

A consolidation loan can also be dangerous if the lender is not able to include all debt into the loan, or if you still have to rely on credit cards to make ends meet. This option can often merely be a “band-aid” solution.

Consumer Proposal

This option can be chosen if a person is unable to pay all of their debts but is willing and able to repay some portion. The exact portion of the debt that is repaid and the monthly payment required is determined based on family income and total debt obligations, and as agreed to by the majority of creditors.

A Consumer Proposal is governed by the same federal legislation as bankruptcy, and therefore provides the same legislated protection from legal proceedings and harassment. Protection is provided at least until the creditors have been presented with the proposal; once the proposal is accepted by the required majority of creditors, ALL creditors are bound by the terms of the proposal.

A proposal needs to offer creditors more than what they would receive in a bankruptcy, but the debtor can feel more in control as they are negotiating a settlement with creditors (with the assistance of a Licensed Insolvency Trustee). A consumer proposal can have a more positive impact on credit rating in the long term but requires fewer funds than paying creditors in full.


This option can be chosen if a person is not in a position to repay a reasonable portion of their debt. Bankruptcy is a federal government-regulated process that provides immediate relief from most creditors. Legal proceedings and harassment by creditors will stop, with very few exceptions (such as obligations for child support).

Bankruptcy can be completed in as short as nine months. Most personal assets are exempt from seizure. A person who files for bankruptcy can generally keep all of their furniture and personal belongings as well as their home and vehicle. If a creditor has a valid secured claim to an asset (such as a mortgage on a home), it is most common that the payments will continue as normal during and beyond the bankruptcy, with no impact on possession of the home or other secured asset.

Payments in bankruptcy are based on a person’s family income and are determined based on standards set by the federal government.

A bankruptcy can only be administered by a qualified Trustee, licensed and regulated by federal legislation.

It’s Ok to hit a financial rough patch, and it’s ok to get help.

Contact us for a FREE confidential consultation

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