It is critical to understand your options when encountering financial difficulties. They may be as simple as sitting down and reworking a household budget to get your monthly finances in order to having to use a formal process such as Orderly Payment of Debt, Formal Proposal or Bankruptcy.
We encourage you to review our web site further as we summarize some of the more formal options for you and also to contact our office for a free consultation as each individuals circumstances vary and the insight and experience of a licensed practitioner will benefit you in determining what steps you need to take to resolve your current situation and to help you plan for your financial future.
We also encourage you to get a second opinion and to be sure that when seeking financial guidance you are satisfied that they are qualified and licensed. Only individuals who are licensed by the Superintendent of Bankruptcy and a Court Order can enforce a Stay of Proceedings against creditors.
When one of the many symptoms of financial difficulties arise, it is important to know that you have options and that you consider these before a making a decision about re-financing, adding further credit to your debt load and further securing existing assets.
Your options may involve one or more of the following formal and informal processes:
Debt Counselling- Debt counselling is intended to provide you with additional information and skills to help you self-identify the causes of your financial problems and to assist you in managing your monthly income and expenses in a manner that will pay off past debt as well as maintain current expenses and allow you to have a financial plan in place for the future. This service is provided by our office.
Orderly Payment of Debt – This is a formal program administered through provincial legislation in certain provinces but no longer administered by the Provincial Mediation Board in Saskatchewan. It is a program that assists debtors in paying off consumer debt in full while paying a limited interest rate of five percent. The plan requires that debts must be paid in full within five years.
Consumer Proposal – This is a formal program administered only by individuals licensed by the Office of the Superintendent of Bankruptcy. There are many “debt re-structuring” services being offered by unlicensed companies and individuals. These do not provide for any Stay of Proceedings against creditors and they cannot offer the same protection and options that a Licensed Insolvency Trustee can. A formal proposal places a Stay of Proceedings against your unsecured creditors and we assist you in putting together a plan that offers the creditors more than what they would receive in a bankruptcy while stopping the interest on the debts and allowing you to manage your monthly finances. For more detail see our section under consumer debt.
Bankruptcy- In the event that a proposal is not viable for your circumstances and you are no longer able to maintain debt obligations, then you may have to consider bankruptcy as an alternative. A bankruptcy puts a Stay of Proceedings in place against your creditors and your financial affairs are closely monitored by a Licensed Insolvency Trustee. You are allowed to keep certain assets (exemptions) and other assets will be liquidated by the trustee for the benefit of your creditors. The purpose of the process is to allow you to have a fresh start financially under a controlled set of rules. For more details see our section under consumer or business debt.