[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"getPageData-/debt-relief-en":3,"getGlobalData-en":429,"getArticleCards-2450-2492-2461-2422-2475-2501-en":839},{"id":4,"slug":5,"title":6,"date":7,"content":8,"uri":9,"status":10,"allFlexBlocks":11,"pageNavigation":12,"seo":14,"liveChat":19,"languageCode":21,"translations":22,"flexBlocks":26},"cG9zdDoyMTA=","debt-relief","Your Debt Relief Options","2024-05-28T14:16:14",null,"/debt-relief/","publish","[{\"fieldGroupName\":\"StandardHeader\",\"heading\":\"The truth is, you have debt-relief options\",\"text\":\"With the cost of living going up, almost half of Canadians have experienced more debt. We\\u2019ve been offering debt solutions for over 45 years, so we understand the stress that debt can create.\",\"image\":{\"iD\":2797,\"id\":2797,\"title\":\"Your Debt Relief Options\",\"filename\":\"Your-Debt-Relief-Options.png\",\"filesize\":606658,\"url\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\",\"link\":\"\\/debt-relief\\/your-debt-relief-options\\/\",\"alt\":\"\",\"author\":\"6\",\"description\":\"\",\"caption\":\"\",\"name\":\"your-debt-relief-options\",\"status\":\"inherit\",\"uploadedTo\":210,\"date\":\"2024-06-27 14:57:56\",\"modified\":\"2024-06-27 15:17:45\",\"menuOrder\":0,\"mimeType\":\"image\\/png\",\"type\":\"image\",\"subtype\":\"png\",\"icon\":\"\\/wp-includes\\/images\\/media\\/default.png\",\"width\":1920,\"height\":1140,\"sizes\":{\"thumbnail\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options-150x150.png\",\"thumbnail-width\":150,\"thumbnail-height\":150,\"medium\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options-300x178.png\",\"medium-width\":300,\"medium-height\":178,\"mediumLarge\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options-768x456.png\",\"mediumLarge-width\":768,\"mediumLarge-height\":456,\"large\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options-1024x608.png\",\"large-width\":1024,\"large-height\":608,\"1536x1536\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options-1536x912.png\",\"1536x1536-width\":1536,\"1536x1536-height\":912,\"2048x2048\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\",\"2048x2048-width\":1920,\"2048x2048-height\":1140,\"gform-image-choice-sm\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\",\"gform-image-choice-sm-width\":300,\"gform-image-choice-sm-height\":178,\"gform-image-choice-md\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\",\"gform-image-choice-md-width\":400,\"gform-image-choice-md-height\":238,\"gform-image-choice-lg\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\",\"gform-image-choice-lg-width\":600,\"gform-image-choice-lg-height\":356},\"relativeUrl\":\"\\/wp-content\\/uploads\\/2024\\/06\\/Your-Debt-Relief-Options.png\"},\"button\":\"\",\"backgroundColor\":\"bg-gold-lightest\",\"spacing\":[]},{\"fieldGroupName\":\"AnchorLinks\",\"heading\":\"On this page\",\"anchors\":[{\"title\":\"Explore your options\",\"anchorId\":\"explore-your-options\"},{\"title\":\"The results\",\"anchorId\":\"results\"},{\"title\":\"What you can save\",\"anchorId\":\"what-you-save\"}]},{\"fieldGroupName\":\"List\",\"subheading\":\"Explore your options\",\"heading\":\"Why a consumer proposal is often the best choice\",\"text\":\"Did you know that a consumer proposal is chosen most often as an alternative to debt consolidation or bankruptcy? It can make up to 80% of your debt go away forever. Only Licensed Insolvency Trustees (LIT) like us can manage it for you.\",\"list\":[{\"item\":\"Interest charges are frozen\"},{\"item\":\"Stops collection calls and creditor action\"},{\"item\":\"0% interest\"},{\"item\":\"Monthly payments \"},{\"item\":\"Always based on what you can afford\"}],\"button\":{\"title\":\"Why choose a consumer proposal?\",\"url\":\"https:\\/\\/www.farber.ca\\/consumer-proposal\\/\",\"target\":\"\"},\"anchorId\":\"explore-your-options\",\"layout\":\"flex-row\",\"listStyle\":\"checkmark\",\"padding\":[\"top-padding\"]},{\"fieldGroupName\":\"GlobalBlock\",\"globalBlock\":51,\"anchorId\":\"results\",\"flexBlocks\":[{\"fieldGroupName\":\"OptionsComparison\",\"introduction\":{\"supertitle\":\"The results\",\"heading\":\"Compare the costs and benefits\",\"text\":\"\"},\"comparisonTable\":[{\"name\":\"Consumer Proposal\",\"description\":\"As LITs, we can cut your debt by up to 80% based on what you can afford, with no interest or penalties on what remains.      \\r\\n\\r\\n\",\"features\":[{\"name\":\"Who qualifies?\",\"value\":\"$6,000-$250,000 unsecured debt, unable to pay on time, with the ability to repay a portion\",\"checkmark\":false},{\"name\":\"What happens to the debt?\",\"value\":\"Reduced by up to 80%, paid monthly\",\"checkmark\":false},{\"name\":\"Is there any interest?\",\"value\":\"0%\",\"checkmark\":false},{\"name\":\"Impact on secured assets?\",\"value\":\"None\",\"checkmark\":false},{\"name\":\"Affect on credit score?\",\"value\":\"At first, your credit goes down, but you begin rebuilding it with this solution.\",\"checkmark\":false}],\"button\":{\"title\":\"Learn about consumer proposals\",\"url\":\"https:\\/\\/www.farber.ca\\/consumer-proposal\\/\",\"target\":\"\"}},{\"name\":\"Bankruptcy\",\"description\":\"Before recommending bankruptcy, we explore all other options like a consumer proposal. Bankruptcy can eliminate debt, but it also has significant implications.\",\"features\":[{\"name\":\"Who qualifies?\",\"value\":\"Unable to pay debts on time\",\"checkmark\":false},{\"name\":\"What happens to the debt? \",\"value\":\"Most of the unsecured debts are eliminated\",\"checkmark\":false},{\"name\":\"Is there any interest? \",\"value\":\"0%\",\"checkmark\":false},{\"name\":\"Impact on assets?\",\"value\":\"Give up all 'non-exempt' assets\",\"checkmark\":false},{\"name\":\"Affect on credit score?\",\"value\":\"Significant negative impact for several years.\",\"checkmark\":false}],\"button\":{\"title\":\"Learn about bankruptcy\",\"url\":\"\\/bankruptcy\",\"target\":\"\"}},{\"name\":\"Debt Consolidation\",\"description\":\"We don\\u2019t provide loans. But debt consolidation under one loan is an option. Remember, these loans usually involve high interest rates. An interest-free alternative is called a consumer proposal.\",\"features\":[{\"name\":\"Who qualifies?\",\"value\":\"Eligible for a loan with multiple debts to simplify payments\",\"checkmark\":false},{\"name\":\"What happens to the debt? \",\"value\":\"Remains the same\",\"checkmark\":false},{\"name\":\"Is there any interest?\",\"value\":\"Can be up to 60%\",\"checkmark\":false},{\"name\":\"Impact on assets?\",\"value\":\"May be needed to secure loan\",\"checkmark\":false},{\"name\":\"Affect on credit score?\",\"value\":\"Varies\",\"checkmark\":false}],\"button\":{\"title\":\"Learn about debt consolidation\",\"url\":\"\\/debt-consolidation\",\"target\":\"\"}}],\"anchorId\":\"\"}]},{\"fieldGroupName\":\"OptionsCallOut\",\"heading\":\"Want to talk through your options?\",\"text\":\"\u003Cp>\u003Ca href=\\\"https:\\/\\/www.farber.ca\\/book-a-consultation\\/\\\">Book a FREE consultation\u003C\\/a>\u003C\\/p>\\n\",\"anchorId\":\"\"},{\"fieldGroupName\":\"DebtPaymentCalculator\",\"introduction\":{\"heading\":\"A consumer proposal is one of Canada\\u2019s best solutions for debt\",\"headingLevel\":\"h2\",\"text\":\"\u003Cp>A consumer proposal is a formal and legally-binding debt settlement agreement between you and the companies you owe money to (your creditors). It can reduce your debt by up to 80% and stops interest and legal action.\u003C\\/p>\\n\u003Cp>\u003Cstrong>How much will you save?\u003C\\/strong>\u003C\\/p>\\n\",\"button\":{\"title\":\"Book a FREE consultation\",\"url\":\"https:\\/\\/www.farber.ca\\/book-a-consultation\",\"target\":\"\"}},\"anchorId\":\"what-you-save\",\"backgroundColor\":\"bg-gold-lightest\",\"padding\":[\"top-padding\",\"bottom-padding\"]},{\"fieldGroupName\":\"GlobalBlock\",\"globalBlock\":324,\"anchorId\":\"\",\"flexBlocks\":[{\"fieldGroupName\":\"ImageTextBanner\",\"image\":{\"iD\":2794,\"id\":2794,\"title\":\"Why Farber CTA\",\"filename\":\"Why-Farber-CTA.png\",\"filesize\":508462,\"url\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\",\"link\":\"\\/?attachment_id=2794\",\"alt\":\"\",\"author\":\"6\",\"description\":\"\",\"caption\":\"\",\"name\":\"why-farber-cta\",\"status\":\"inherit\",\"uploadedTo\":324,\"date\":\"2024-06-27 14:57:33\",\"modified\":\"2024-06-27 15:18:14\",\"menuOrder\":0,\"mimeType\":\"image\\/png\",\"type\":\"image\",\"subtype\":\"png\",\"icon\":\"\\/wp-includes\\/images\\/media\\/default.png\",\"width\":1920,\"height\":1140,\"sizes\":{\"thumbnail\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA-150x150.png\",\"thumbnail-width\":150,\"thumbnail-height\":150,\"medium\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA-300x178.png\",\"medium-width\":300,\"medium-height\":178,\"mediumLarge\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA-768x456.png\",\"mediumLarge-width\":768,\"mediumLarge-height\":456,\"large\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA-1024x608.png\",\"large-width\":1024,\"large-height\":608,\"1536x1536\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA-1536x912.png\",\"1536x1536-width\":1536,\"1536x1536-height\":912,\"2048x2048\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\",\"2048x2048-width\":1920,\"2048x2048-height\":1140,\"gform-image-choice-sm\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\",\"gform-image-choice-sm-width\":300,\"gform-image-choice-sm-height\":178,\"gform-image-choice-md\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\",\"gform-image-choice-md-width\":400,\"gform-image-choice-md-height\":238,\"gform-image-choice-lg\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\",\"gform-image-choice-lg-width\":600,\"gform-image-choice-lg-height\":356},\"relativeUrl\":\"\\/wp-content\\/uploads\\/2024\\/06\\/Why-Farber-CTA.png\"},\"supertitleStyling\":\"regular\",\"supertitle\":\"Why Farber?\",\"badgeNumber\":\"\",\"heading\":\"We believe that everyone can prosper\",\"text\":\"\u003Cp>The debt you\\u2019re facing today is not forever. 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your story with one of our supportive team members\"},{\"icon\":{\"iD\":2719,\"id\":2719,\"title\":\"icons8-compare\",\"filename\":\"icons8-compare.svg\",\"filesize\":2280,\"url\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/icons8-compare.svg\",\"link\":\"\\/?attachment_id=2719\",\"alt\":\"\",\"author\":\"6\",\"description\":\"\",\"caption\":\"\",\"name\":\"icons8-compare\",\"status\":\"inherit\",\"uploadedTo\":348,\"date\":\"2024-06-24 14:59:48\",\"modified\":\"2024-06-24 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your debt-relief options together\"},{\"icon\":{\"iD\":2733,\"id\":2733,\"title\":\"icons8-timeline\",\"filename\":\"icons8-timeline.svg\",\"filesize\":2591,\"url\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/icons8-timeline.svg\",\"link\":\"\\/?attachment_id=2733\",\"alt\":\"\",\"author\":\"6\",\"description\":\"\",\"caption\":\"\",\"name\":\"icons8-timeline\",\"status\":\"inherit\",\"uploadedTo\":348,\"date\":\"2024-06-24 15:00:03\",\"modified\":\"2024-06-24 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a plan to help regain control of your money\"},{\"icon\":{\"iD\":3328,\"id\":3328,\"title\":\"icons8-low-price\",\"filename\":\"icons8-low-price.svg\",\"filesize\":1888,\"url\":\"https:\\/\\/www.farber.ca\\/wp-content\\/uploads\\/2024\\/06\\/icons8-low-price.svg\",\"link\":\"\\/?attachment_id=3328\",\"alt\":\"\",\"author\":\"6\",\"description\":\"\",\"caption\":\"\",\"name\":\"icons8-low-price\",\"status\":\"inherit\",\"uploadedTo\":348,\"date\":\"2024-07-22 09:49:42\",\"modified\":\"2024-07-22 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lowering your debt and easing your stress\"}],\"showArrows\":true,\"anchorId\":\"\"}]},{\"fieldGroupName\":\"TrustpilotReviewSlider\",\"anchorId\":\"\"},{\"fieldGroupName\":\"ArticleCards\",\"heading\":\"The truth about debt\",\"cards\":[{\"ID\":2450,\"post_author\":\"6\",\"post_date\":\"2021-04-01 12:51:00\",\"post_date_gmt\":\"2021-04-01 16:51:00\",\"post_content\":\"\u003Ch2 class=\\\"\\\">What Is A Consumer Proposal?\u003C\\/h2>\\r\\n\u003Cp>A Consumer Proposal is a formal agreement between you and your creditors that is submitted on your behalf by a Licensed Insolvency Trustee (LIT). It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing. This can result in as much as a 80% debt saving. Most important, it allows you to retain assets, such as your car and your home. A Consumer Proposal allows you to get out of debt faster and easier, as compared to other debt relief solutions, and can be paid down quicker if you can do so.\u003C\\/p>\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-consumer-proposal-loans\\\">Consumer Proposal & Loans\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>A very common question is whether a Consumer Proposal or Bankruptcy can help with Provincial or Federal student loan debts. This depends on how old the student loan debt is. According to the Bankruptcy and Insolvency Act, you can eliminate student loan debt through bankruptcy or Consumer Proposal if your loans are more than seven years old from the date you finished at the post-secondary institution you attended.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Therefore, if you\\u2019ve been out of school for more than seven years and are struggling to pay down your debt, you could find relief by speaking with a Licensed Insolvency Trustee and reviewing your options.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>If it has not been seven years since you graduated, your student loan cannot be included in a Consumer Proposal or Bankruptcy. If you are in this situation, you will need to consider other options to help you handle your student loan debt pressures. There are some hardship provisions in the Act which could allow you to receive repayment assistance. This assistance could see your student loan payments reduced or you may not have to make any payments, depending on your financial situation.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Also, keep in mind that while a Consumer Proposal or Bankruptcy will not specifically help with your student loan debt if this debt is less than seven years old, these processes can help reduce or eliminate all of your other sizable debts (like credit cards with high interest rates), freeing up money in your monthly budget to cover the student loan repayment without further financial stress.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The good news? A Consumer Proposal does not ruin your credit rating forever. In fact, it puts you in a position where repairing your credit is very achievable.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>After you have successfully completed your Consumer Proposal, there will be a note on your credit report at the credit bureau (TransUnion or Equifax) for three years. That three-year period will not prevent you from improving your credit score over time. One of the most important factors that is used to calculate a credit score is your payment history. Showing the credit bureaus that you can borrow money and successfully pay it back will improve your credit.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>It makes sense to start small when it comes to credit rebuilding. After your Consumer Proposal has been completed, take out a small loan or apply for a credit card. You may wish to choose a secured credit card (where you put down a small deposit and the card issuer grants you a slightly larger credit limit) since this will likely be easier for you to obtain. Then it\\u2019s up to you to make responsible and regular payments on this card. Try to avoid a Prepaid Card as those cards do not report to the credit bureaus like a Secured Card would, and won\\u2019t help you in your rebuilding efforts.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>It\\u2019s very important to be aware that rebuilding credit after a Consumer Proposal takes time. It is not an instantaneous process. Avoid companies that promise to be able to \\u201cfix\\u201d your credit rating quickly or automatically. No one can change the information that is listed in your credit report. The only way to repair bad credit is by having responsible and consistent credit behavior over time.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>After a Consumer Proposal, you will need to show that you can borrow money responsibly. Showing this will allow you to rebuild your credit score.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>You may have seen some of the Payday Loan companies scattered around your neighborhood. There are usually a few in every community and they are designed to make it easier for cash-strapped employees to borrow against their future pay cheques (another name for a Payday Loan is a cash advance). These are small, short-term unsecured loans that are tied to your pay cheque. The Pay Day Loan store advances you some funds against your next pay cheque. Once you get paid you go in and pay back the loan, as well as a chunk of interest.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The big problem with most Pay Day loans is they usually turn out to be anything but low-interest OR short-term. They are the loan of last resort (where we go when all other loan sources, such as banks, friends and family, have turned us down).\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Once caught in the web of Pay Day loan repayments, a borrower will often find themselves heading to a second or a third Pay Day loan store to borrow funds to cover the growing debt on the first Pay Day loan - with often disastrous financial results.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Payday Loans are the worst form of revolving credit and are hopelessly unaffordable for most people. The best way to deal with a Pay Day loan is not to use one at all.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Luckily, there is hope thanks to the Bankruptcy and Insolvency Act. If you\\u2019re already caught up in a frustrating Pay Day loan cycle, a Licensed Insolvency Trustee can help you put a stop to the nightmare once and for all.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Getting a car loan in Canada while currently in (or coming out of) a Consumer Proposal is possible if you apply through a private lender, show your proof of Consumer Proposal documents and can ensure that your debt-to-income ratio is low (the amount of debt you hold versus your net monthly income).\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>There are lots of terrific car dealers across the country whose business models are designed around assisting people who are in a Consumer Proposal. And since financing or leasing an automobile is a secured debt, it\\u2019s a safe debt to take on (both for the lender, who could repossess the vehicle if you fail to make the required monthly payments on time, and for yourself since you will be able to start rebuilding your credit once the lender reports your on-time monthly payments to the credit bureaus), while in a Proposal or even in a Bankruptcy.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-consumer-proposal-mortgage\\\">Consumer Proposal & Mortgage\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>One of the most frequent questions a Trustee hears is \\u201cwill I be able to buy a home one day?\\u201d or the alternative \\u201cwill my bank renew my mortgage if I am in a Consumer Proposal?\\u201d\\u00a0\\u00a0 Both excellent questions that deserve some explanation.\\u00a0\\u00a0 Luckily, the news is positive on both.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>For you to get the best deal on a mortgage either during a Consumer Proposal or afterwards you need to ensure a few things are done properly, including:\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>Ensure you pay all your monthly bills (including utility bills) on time \\u2013 mortgage lenders have been known to reject a new mortgage due to defaults on utility bills. So, it\\u2019s not just a big monthly expense like the mortgage payment and the car financing payment you need to worry about, it\\u2019s also those cable, phone, gas and hydro bills.\\u00a0 Always keep them current.\u003C\\/li>\\r\\n\u003Cli>Pay down your Consumer Proposal quickly \\u2013 it will be much easier for you to qualify for a brand-new mortgage and get that home you are eager to buy if you don\\u2019t still have Consumer Proposal payments on your monthly expense list. Pay it down faster than required (you can pay a proposal off early by speaking with your Administrator) and then go apply for that mortgage.\\u00a0 Plus, without the Consumer Proposal payments you\\u2019ll probably qualify for a better mortgage rate, thereby saving yourself a lot of cash over the years in unnecessary interest payments.\u003C\\/li>\\r\\n\u003Cli>Save towards a larger down payment \\u2013 a lot of folks put down 5% and then qualify for a mortgage. By offering a much larger down payment (some lenders will be looking for at least 15% down, more likely 20% down) you can negotiate a better interest rate on the mortgage you are getting.\\u00a0 And that means less money spent on interest and a faster pay-off time for the mortgage over the years.\\u00a0\\u00a0\u003C\\/li>\\r\\n\u003Cli>Don\\u2019t just focus on the banks \\u2013 consider alternative lenders as well -- many alternative lenders will consider approving your application for a mortgage soon after your discharge, if your past debts are fully cleared, and you are starting to re-establish credit. If you\\u2019re looking to re-finance your existing mortgage, it\\u2019s even possible that you could use part of the funds to pay off the proposal\u003C\\/li>\\r\\n\u003Cli>Try to make your credit rating as perfect as you possibly can. Your goal is to get your credit rating above 700. But the rating isn\\u2019t the only thing that\\u2019s important. Mortgage lenders want to see at least two significant \\u201cclean\\u201d credit facilities on your credit bureau.\\u00a0\\u00a0 This includes major credit cards such as a Visa or MasterCard, as well as a car lease or loan, or sometimes even an RRSP loan (if it reports to the credit bureau).\\u00a0 With your current \\u201cclean\\u201d credit cards, your balance should never exceed more than 30% of the limit.\\u00a0\u003C\\/li>\\r\\n\u003Cli>Obtain some solid advice from a mortgage broker. Not only does a mortgage broker have a much better overview of all the options available to you, you will also get someone who will help you with looking at your credit and making specific recommendations for improving it, give you feedback on any other aspects of your financial picture that you need to give attention to, and provide you with a game plan for getting a great mortgage, both short- and long-term.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The good news: Your home is safe. These assets remain your property. The lender usually takes some form of security such as a mortgage, to secure the amount you owe in the event you do not repay the loan. So, your home should be safe if your mortgage payments are up to date and you are current on your property taxes.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>In most cases, you do not lose your assets when you file a Consumer Proposal if your offer is enough to satisfy your creditors. This means that, if you continue to make your payments, you will most likely be able to keep your home. Speaking with a Licensed Insolvency Trustee can clarify this for your situation. However, a Consumer Proposal does not usually involve the loss of assets.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>A mortgage lender cannot change the terms of your mortgage because you have filed a Consumer Proposal. The only way that a lender can foreclose on your home is if you have missed payments. As mentioned, if you continue to make your payments on time, you should have no problems.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>In a Consumer Proposal situation, you typically make a payment to your trustee each month. The trustee then distributes this payment to your creditors. Having a standard monthly payment makes it easier to budget so you should be able to fit your mortgage payments and your proposal payments into your household budget.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>It is important to note that a Consumer Proposal is filed to all unsecured creditors. Unsecured debts include credit card debt, personal loans, unsecured lines of credit, bank overdraft fees and other such debts. Secured loans such as automobile loans and mortgages are not included in a Consumer Proposal. If you are having trouble paying these debts, you should speak to these lenders directly.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>If you need to renew your mortgage after filing a Consumer Proposal, you should generally not have an issue with doing so, dependent on whether you have made all your mortgage payments in the past and you can show the mortgage lender that you will be able to continue to make your payments in the future. However, a Consumer Proposal can make it more difficult to switch mortgage lenders. It can also make it more difficult to get a favorable interest rate when you do renew.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>It\\u2019s important to remember that a Consumer Proposal remains on your credit record for three years after it is completed \\u2013 some lenders will see this as a negative and either reject your renewal or ask for a higher interest rate during the time that Consumer Proposal remains on your credit report. It\\u2019s also important to remember that, since you were more than likely in a difficult financial situation before filing your Consumer Proposal, getting a favorable interest rate would likely be difficult anyway. You may have to endure the short-term pain of a 1, 2 or 5-year higher interest renewal and then negotiate a much lower renewal interest rate the next time you apply to renew the mortgage. Short term pain = long term gain.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>It can be more complicated to get a brand-new mortgage after filing a Consumer Proposal. This is because a Consumer Proposal negatively impacts your credit rating. However, depending on your circumstances, you may still be able to get a mortgage.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>To increase the likelihood of getting a mortgage after a Consumer Proposal, here are a few guidelines to follow:\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>Take steps to rebuild your credit. Rebuilding your credit rating after a Consumer Proposal is not only possible but pretty much mandatory if you hope to have usable credit again. The first step? Consider applying for a secured credit card and then using the card for small purchases. Paying the card off in full and on time each month can then help restore your credit (You will be required to take two financial counselling sessions as a part of the Consumer Proposal process. These sessions will provide you with guidance on how to restore your credit).\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>Look for a shorter-term mortgage. Since the interest rate on the mortgage will likely be higher than you\\u2019d like, consider getting a one- or two-year mortgage term and then re-negotiating the interest charged when you renew the mortgage with your lender (and your credit is better than it was the first time around). This strategy will help you avoid paying higher rates for longer than necessary.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>Offer a much larger down payment. Saving money so you can slap down a larger down payment can help you get a better mortgage rate. Most mortgage lenders like to see a 20% down payment (or more).\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>Be realistic about what you can afford \\u2013 try and choose a property that is affordable, both in terms of physical upkeep and monthly payments (including mortgage, property taxes, utilities or maintenance fees, etc.). That may mean buying a small condominium unit to start, then moving up to a small home later, once your credit and ability to earn income improve.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>By following these guidelines, you increase your chances of getting a mortgage, even if you have filed a Consumer Proposal.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-consumer-proposal-your-credit-rating\\\">Consumer Proposal & Your Credit Rating\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Your credit rating isn\\u2019t damaged forever once you file a Consumer Proposal. This is a common misconception that is often reinforced by creditors and collection agencies, who are trying to scare you into paying them before you file the proposal.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>There is most-certainly an impact on your credit rating, however. But if you are in a position where filing a Consumer Proposal makes financial sense for you, your credit has likely already been damaged by prior missed payments or late payments (though many people who file Consumer Proposal have been successfully making small minimum payments for years before they file, and their credit scores appear quite robust). Ultimately, filing a Consumer Proposal and dealing with your rising debt load will help you in the long run. But it won\\u2019t happen overnight.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>One of the best things about a Consumer Proposal is that, once filed, it puts you onto the right path and in position to start rebuilding your financial life. Rather than continuing the same minimum-payment dance that you\\u2019ve already been doing month after month, you will put that nasty debt behind you once and for all and be financially free to acquire new credit in a responsible manner.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>One of the best ways to ensure you get on-track is to attend the two mandatory financial counselling sessions that are part of your Consumer Proposal process. These sessions teach you about money management as well as monthly budgeting and provide you with information that will help you manage your financial life going forward \\u2013 one of the major components of the two sessions is a discussion of how you can rebuild your credit rating following the successful completion of the proposal.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>When it comes to rebuilding your credit rating, it\\u2019s important to consider what actions are considered important by the credit bureaus (normally TransUnion and Equifax). One of the most important factors is your ability to repay your debts on time. This means that for you to dramatically improve your credit you will need to show your creditors (and ultimately the credit bureaus) that you are able to responsibly borrow money and pay it back as it becomes due.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>However, you may find it difficult to acquire new credit if you have a low or poor credit rating. One solution to this problem is to apply for a secured credit card. This is a card that allows you to put down a small one-time payment that is then secured against the credit issued to you for the card by the lender. For example, if you put down $79, your credit card could have up to a $500 limit. You can then use this card for purchases in-person and online, such as groceries, gas or a hotel room or plane ticket. Paying the bill on this card as it becomes due will show credit bureaus and lenders that you are able to responsibly use credit, and this will help improve your credit report. They may even boost your credit level over time, as well as convert the secured card into a more traditional non-secured card once you\\u2019ve proven yourself a responsible borrower.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The best thing about a Consumer Proposal (aside from the financial freedom it grants you) is that it does not mean your credit rating is ruined forever. By taking the right steps, you can improve your credit and propel yourself back into a strong financial position.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>As you can may already be aware, when you file a Consumer Proposal, the two credit bureaus list your existing debts as \\u201cR9.\\u201d You will likely remain at this rating until you have completed the proposal. When you complete your Consumer Proposal and receive your Certificate of Full Performance from the Trustee, a note is placed on your credit report. This note remains there for three years. This rating indicates someone has made a special arrangement to pay their debts, such as a consolidation plan, debt management plan or Consumer Proposal and has successfully completed the process.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>After the three-year waiting period, any mention of your past debts disappears completely from your credit report, as does any related information about the Consumer Proposal you had filed and completed. To any new creditor reviewing your report it will appear as if you never filed a Consumer Proposal at all. Best of all, any new debt acquired since the date the proposal was first filed (such as a secured credit card or a car loan) is the only debt displayed on your credit report at that point.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-consumer-proposal-payments\\\">Consumer Proposal Payments\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Consumer proposals come in all shapes and sizes, including the not uncommon \\u201clump sum payment\\u201d variety. Many Consumer Proposal in Ontario are based on a simple monthly payment format but some consumer debtors can offer a lump-sum proposal to their creditors, usually with the help of a family member or friend, by remortgaging an existing home, selling off a specific asset or cashing out an investment (such as a TFSA or a stock portfolio).\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The advantages of a lump-sum proposal over a traditional Consumer Proposal include:\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:list -->\\r\\n\u003Cul>\\r\\n\u003Cli>A lump sum proposal is only finalized once a simple majority of your creditors (by dollar value of debts owed) vote in agreement to accept the proposal. Once that acceptance is in place, the lump sum is paid by the consumer debtor and the proposal is successfully completed shortly afterwards.\u003C\\/li>\\r\\n\u003Cli>Creditors will accept a lower repayment at the start of the payments, rather than having to wait up to a maximum of five years for monthly payments to accumulate and be distributed to them.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003C!-- \\/wp:list -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>If you feel you have access to a large lump sum, either from a family member, by refinancing your home or by cashing out an investment account, then consider a lump-sum proposal over a traditional Consumer Proposal to speed up the entire process and get back on track financially faster.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>For you to successfully complete your Consumer Proposal, your main duty and responsibility is to ensure that you make your proposal payments each month as agreed. These payments will be made directly to your trustee through a pre-authorized withdrawal from your bank account. The Trustee will then distribute the funds to your creditors once the accrual has reached a specific level. It is very important that you make these payments. If you miss three payments over the life of your proposal, the proposal can be annulled - this means your creditors will be free to take legal action against you in order to collect the full amount of debt owing to them, plus accumulated interest from the date the proposal was first filed.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Missing a payment here and there is not a huge problem if you replace the payment as soon as possible by either dropping off a replacement cheque, a cash payment or a money order to the Trustee\\u2019s office as soon as you possibly can. Then it will be as if you never missed a payment.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The Consumer Proposals we see annulled are usually the result of job loss or a substantial drop in income (for example, a change of employment to a lower-paying job for a different employer or the need to go on long-term disability due to an injury at work). These types of scenarios can make it extremely difficult for a consumer debtor to keep the monthly payments current. And once three payments are missed, annulment is the next step.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Remember: If your Proposal does get annulled you can always opt to file for personal bankruptcy so there is another option available. Your Trustee can move quickly to prepare the bankruptcy paperwork, and have you come in to sign everything. Once filed with the government your court protection from your creditors would be back in place.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>One of the major benefits of filing a Consumer Proposal, rather than a Bankruptcy, is the freedom you can achieve if you can pay if off earlier (a Proposal can be paid down at any time after acceptance by the Creditors and the Court). And unlike some of those expensive loans, a Consumer Proposal has another benefit \\u2013 there are no penalty charges or interest. In fact, we encourage you to pay down a Consumer Proposal as quickly as possible, so you can receive your Certificate of Completion earlier and use it to improve your credit rating.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Unfortunately, Consumer Proposal payments to the Trustee are not tax-deductible, even though the process is overseen by a government agency, the Office of the Superintendent of Bankruptcy. It\\u2019s always important to remember that when you make those proposal payments you are paying off a portion of the unsecured consumer debt you owe to your creditors. This is money you have already spent on goods and services. The major benefit of filing a Consumer Proposal is to obtain relief from the stress of having a large debt load and an end to any further interest being charged on your debts.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-frequently-asked-questions-about-consumer-proposal\\\">Frequently Asked Questions About Consumer Proposal\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Most Consumer Proposals last from three to a maximum of five years (with 5 years being the norm). You generally make one monthly payment to your Licensed Insolvency Trustee, who disburses the funds to your creditors on your behalf. You have more flexibility in managing your monthly expenses, because the total amount you have agreed to can be paid out over a full five-year period. There are no additional payments other than those being offered under your Proposal. Once accepted, the Consumer Proposal is legally binding on all your creditors. In other types of debt settlements, you would normally need to negotiate a settlement with each creditor individually, and some could choose to opt out. In a Consumer Proposal, once a simple majority of positive votes by dollar value is achieved then all the other creditors are part of the settlement \\u2013 even if they voted against the proposal during the 45-day voting period (which begins right after protection goes into effect). You are formally discharged from the balance of your debts owing once you make your final payment to the Licensed Insolvency Trustee. The Trustee then issues you a Certificate of Completion and notifies the credit bureaus that you have successfully completed your proposal duties.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>To be eligible to file a Consumer Proposal you must be insolvent (i.e. unable to pay your debts as they become due), have a total debt load of less than $250,000 (excluding the mortgage on your principal residence), have a stable source of income (or a friend or family member who is prepared to underwrite the proposal's monthly payments on your behalf) and have no prior Proposal proceedings still active. If you are currently having difficulty meeting your debt repayments (for example, you miss monthly payments or are paying just the minimum payments on your credit cards), a Consumer Proposal may be a far better solution than some other options, such as a \u003Ca href=\\\"\\/blog\\/consolidating-unsecured-debts-mortgage-secured-line\\/\\\">debt consolidation\u003C\\/a> or credit counselling. You will normally end up paying your creditors less in a Consumer Proposal than under those other two options, and interest will stop the moment the proposal is filed with the Official Receiver (the Federal government).\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>If you choose to file a Consumer Proposal, the Licensed Insolvency Trustee (LIT) will determine what a fair offer to your creditors will be, based upon your financial situation. Often the amount to be offered in a settlement will be approximately 30% of what you currently owe all your creditors. You will then complete all required legal paper work; the Consumer Proposal will be filed with the Federal Regulator and your offer will be sent out to all your unsecured creditors by the Trustee\\u2019s staff.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>More than $250,000 of debt? Consider a Division 1 Proposal\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Like a Consumer Proposal, this is a formal procedure overseen by the Licensed Insolvency Trustee (LIT) under the Bankruptcy and Insolvency Act (the BIA). This type of Proposal is available to businesses and individuals \\u2014 there is no limit with respect to how much money is owed (other than the requirement that the amount owing must be over $250,000). As with a Consumer Proposal, in a Division I proposal, you work with a Licensed Insolvency Trustee to construct a fair offer to pay your creditors a percentage of what you owe them, payable over a specific timeframe. And just like a Consumer Proposal, all payments are made through the Insolvency Trustee, and the Trustee holds those funds in trust as they accrue and then uses them to pay each of your creditors.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Because a Division One or Consumer Proposal in Canada can only be submitted to your creditors by a Licensed Insolvency Trustee (also known as a LIT), a debt consolidation firm or credit counselor cannot file a Consumer Proposal for you nor can you file a Consumer Proposal on your own. Because the Bankruptcy and Insolvency Act states that only a Licensed Insolvency Trustee can file the proposal, the integrity of the system stands firm. Trustees are licensed through the Federal Government and understand both Provincial and Federal laws. They are required to perform a face-to-face Assessment with you and ensure all unsecured debts, all assets and all other pertinent information (including a detailed household income and expense report) is prepared and signed. This ensures the proposal is being filed properly so it is legally-binding on you and all your unsecured creditors once accepted by a simple majority of your creditors.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>In order to be eligible to file a Consumer Proposal you must an insolvent person, be unable to pay your debts as they become due and have total debts of less than $250,000 (excluding the mortgage on your principal residence). You must also have a stable source of income, to ensure that you will be able to make the monthly proposal payments, and have no prior proposal proceedings still open.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>You can withdraw a Consumer Proposal within the first 60 days of filing the proposal. However, the danger in doing so is that all the unsecured creditors would then be able to descend on you again, demanding full repayment with interest charges added for the period since the Consumer Proposal was first filed. If you are seriously considering withdrawing your proposal, we strongly recommend you first speak to the Trustee that is handling your Consumer Proposal about the alternatives available to you (for example, the filing of a personal bankruptcy as an alternative way of dealing with your debt pressures).\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Generally, most employers will not ask if you have filed either a bankruptcy or proposal. However, some industries, specifically the financial or insurance sectors, may require that you disclose this information. By choosing to file a Consumer Proposal, rather than a personal bankruptcy, you can then retain your professional credentials or license (as in the case of an insurance broker, a director of a corporation, a licensed real estate broker, lawyer etc.)\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Consumer Proposals must be voted on by all unsecured creditors. Once registered with the Official Receiver, a Consumer Proposal is sent out to all your creditors and they have 45 days from the date of filing to vote. Most Consumer Proposals are accepted \\u201cas is\\u201d but a small percentage require an additional stipulation included (at the request of the creditor, for example CRA) or a slightly-larger settlement amount agreed to by the debtor. The rule of thumb is: The Consumer Proposal must be a better offer, dollar wise, than what the creditor would receive in a Bankruptcy. Once accepted by a simple majority of your unsecured creditors, all of them are bound by the terms of the Proposal agreement. This is the major difference (and sizeable advantage) of a Consumer Proposal as compared to an informal debt settlement, whereas a debt settlement is negotiated with each creditor individually (often a very tenuous process). In Ontario, Consumer Proposals are usually accepted if they are fair and reasonable. This is because creditors know that they will get significantly less money from you in a Bankruptcy scenario.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Are you borrowing from one credit card to pay the minimum monthly amount on another card? Constantly relying on your overdraft to cover monthly bills and debt repayment? Frustrated by the amount of interest being racked up on your line of credit or department store cards each month? Then it\\u2019s probably time for you to to speak with a Licensed Insolvency Trustee. We completely understand how difficult and stressful it can be to speak to a licensed professional about your debt woes. The good news? There are countless debt relief options for you to choose from, each tailored towards a different type of debt or situation. For many Canadians a Consumer Proposal is the ideal solution to their debt worries.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Your creditors will have 45 days to either accept or reject your proposal. Any creditor with a proven claim may accept or object to your proposal. This can be done either prior to or at the meeting of creditors, (if one is held). It can also be done within 45 days following the filing of your Consumer Proposal. A meeting of creditors will be called if one is requested by one or more creditors having at least 25% of the value of the proven claims filed with the Trustee. This request must be made within 45 days of the filing of your proposal. The OSB can also direct your Trustee to call a meeting of creditors at any time within this 45-day period. A meeting of creditors will be held within 21 days after being called by the Trustee. It\\u2019s rare for creditors to outright reject a reasonable Consumer Proposal. Some may wish an additional stipulation be added to the Proposal\\u2019s wording (as in the case of CRA) or request the debtor increase his settlement offer amount slightly to satisfy a specific creditor. There is almost always a way to obtain acceptance of the Consumer Proposal. And every Consumer Proposal drafted is unique in that it contains a specific list of assets and debts that no other Proposal will contain in just that same way.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Each month you will pay the Trustee an agreed-upon fee that is \\u201clocked in\\u201d once the Proposal is accepted by your creditors. No surprises. Missing a payment is discouraged but Trustees are aware that the intrusion of the real world tends to result in a missed payment now and again. If you replace the payment within a short period of time, your Proposal will continue unabated. The important thing to remember is the \\u201cthree strikes rule\\u201d, which is known officially as a \\u201cdeemed annulment\\\". This occurs when you miss a total of three payments over the course of the Proposal and don\\u2019t make up the payments in a timely manner.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Cancelling your Consumer Proposal is known as an annulment. The consequences of an annulled Consumer Proposal are severe. First, unlike other debt relief options that get cancelled, you will lose all the money that has been given to your creditors. All funds that have been paid will not be returned to you. After receiving notice of the annulled proposal, some, or all, of your creditors will eventually start contacting you again for repayment. If able to do so, you could try making your own informal offers with your creditors to settle each of your debts on your own (a difficult process at the best of times). Opportunities such as selling your assets to raise funds for debt repayment could be another way to eliminate or reduce a debt amount. Many consumer debtors who withdraw from a Proposal ultimately end up filing for Personal Bankruptcy protection from those same creditors to ease their debt pressures.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The good news is that your assets can be protected under a Consumer Proposal. Unlike a bankruptcy, where you could lose some of your assets depending on their value and the province that you live in, a Consumer Proposal allows you to keep what you own if the creditors agree to the amount you have committed to repay. This is particularly important if you own a vehicle, have RESPs for your children (except in Alberta) or have net equity in your home after selling costs and mortgage repayment. Money invested in an RRSP is generally protected from creditors with some exceptions (any funds contributed within the past 12-month period must be calculated into the value of your realizable assets in some provinces). Provincial government exemptions (which differ from province to province) allow you to protect various assets from seizure by your creditors.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>A Consumer Proposal also puts a stop to any wage garnishment and unfreezes your frozen bank accounts. The process also ends any civil legal action against you to collect on the debt. However, there are exceptions to this, specifically wage garnishments and legal action that are a result of unpaid child support or spousal support. These debts cannot be eliminated by a Consumer Proposal and filing a proposal does not stop legal action or wage garnishment in these cases. Aside from those specific debts, when you file a Consumer Proposal all wage garnishments and collection calls cease. This is called a Stay of Proceedings -- it means you are protected from any creditors starting or continuing any legal proceedings to collect any debt owed to them.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The Canada Revenue Agency (CRA) can order your bank account frozen if you owe the agency money. If you owe your bank money (through a bank loan or a credit card supplied by the bank, for example) the bank can also freeze your bank account or seize funds from the account without warning if you are behind on your minimum monthly payments on your lines of credit, overdraft, bank loan or credit cards. When your bank account is frozen, you will be unable to withdraw any funds from the account. Instead, the CRA or your bank seizes the funds directly from your account in order to repay a portion, or all, of the debt that is owed. A Consumer Proposal unfreezes frozen bank accounts but cannot get back the funds already seized.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The only way to rebuild bad credit is to replace it with good credit over time. This can often be done by obtaining a secured credit card and using it regularly as well as paying it down each month. A secured credit card is a special type of credit card where you place a small deposit up front and this amount is used to secure the credit limit on the card. For example, some secured credit cards require an initial security deposit of $75 and then an annual fee to use the card. In exchange you are given anywhere from $200 to $2,000 of credit on the card to use as a way of helping you re-establish your credit worthiness. Using this card and repaying the outstanding balance in full each month helps rebuild your credit rating and your Beacon Score and demonstrates to other prospective creditors that you can use credit in a reliable, responsible manner and are a good credit risk.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Many people wonder about the impact of a Consumer Proposal on RRSP investments. A lot worry that they\\u2019ll lose the money they\\u2019ve worked so hard to contribute to their RRSPs when they file a Consumer Proposal. This is a valid concern. After all, your RRSP contributions are funds that you may have saved for many years to sustain you in your future retirement.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>This money is vital to your future because you\\u2019ll need to live on it one day. When you file a Consumer Proposal, you generally do not have to give up any assets (or your monthly payment to creditors compensates them for the value of those assets, where applicable). This includes funds invested in an RRSP. Therefore, in most cases, the money in your RRSP will remain untouched when you file a Consumer Proposal.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>When you file a Consumer Proposal, you enter a legal process. The terms of your Proposal will detail the payments you are required to make as well as the term of the proposal. Once you have completed these payments and fulfilled all duties associated with your Consumer Proposal, you will receive a Certificate of Full Performance signed by your Licensed Insolvency Trustee. You will then forward a copy of this certificate to the two major credit bureaus (TransUnion and Equifax) in order to let them know that your proposal has been successfully completed. However, the credit bureaus will likely also be notified by the Licensed Insolvency Trustee of your completion. It is recommended that you request a free copy of your credit report once per year to check its status and to ensure all your debts are designated as being resolved through the Proposal process. Sometimes errors can creep into a credit report \\u2013 by monitoring the report yearly you can request a correction from the credit bureau and keep your credit score from dropping due to errors.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\",\"post_title\":\"What is a Consumer Proposal and How Can It Help You?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"what-is-a-consumer-proposal\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-01-10 07:52:28\",\"post_modified_gmt\":\"2025-01-10 12:52:28\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/consumer-proposal\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":2492,\"post_author\":\"6\",\"post_date\":\"2016-08-03 16:01:00\",\"post_date_gmt\":\"2016-08-03 20:01:00\",\"post_content\":\"Dealing with debt can feel overwhelming, but the good news is that there are options available in Canada to help you find relief. Two of the most popular solutions are consumer proposals and bankruptcy.\\r\\n\\r\\nWhile both can help you get back on track, understanding the differences between a consumer proposal vs. bankruptcy can help you decide which option suits you best. Let us break down both so you can decide which one might be a better option for you!\\r\\n\u003Ch2 aria-level=\\\"2\\\">What is a Consumer Proposal?\u003C\\/h2>\\r\\nYou may not have heard of a consumer proposal before. Think of a \u003Ca href=\\\"\\/consumer-proposal\\\">consumer proposal\u003C\\/a> as a way to hit \\u201cpause\\u201d on your debt and negotiate a deal that works for both you and your creditors. Often up to 80% of your debt is forgiven!\\r\\n\\r\\nA consumer proposal is a formal and legally-binding debt settlement agreement where you pay back a portion of what you owe over a set period. The monthly payments are based on what you can afford to ensure you make your payments.\\r\\n\\r\\nOther perks? It can stop those dreaded collection calls and creditor actions.\\r\\n\\r\\nA consumer proposal can only be managed by \u003Ca href=\\\"\\/why-a-licensed-insolvency-trustee\\\">Licensed Insolvency Trustees (LITs)\u003C\\/a>. They handle all negotiations with your creditors to help take the pressure off your shoulders.\\r\\n\u003Ch3 aria-level=\\\"3\\\">How Does a Consumer Proposal Work with Your Creditors?\u003C\\/h3>\\r\\nIt starts by sitting down with a LIT, who looks at your financial situation and helps you propose a deal to your unsecured creditors. Usually, this involves paying back a percentage of the total debt over a few years. The creditors vote on the plan, and if the majority agree, you are good to go!\\r\\n\u003Ch3 aria-level=\\\"3\\\">Who Can Qualify for a Consumer Proposal?\u003C\\/h3>\\r\\nThis option is for people who are making an income but find it tough to pay their full debt. To be eligible for a consumer proposal with Farber, you must be at least 18 years old, a Canadian resident or own property in Canada, your total unsecured debts are less than $250,000 and have enough income to make regular payments.\\r\\n\\r\\nWe recommend you speak with our team to talk about qualifications when considering if a consumer proposal, or any other debt-relief solution, is right for you.\\r\\n\u003Ch3 aria-level=\\\"3\\\">What Are the Key Benefits of a Consumer Proposal?\u003C\\/h3>\\r\\n\u003Cul>\\r\\n \\t\u003Cli>\u003Cstrong>Keep your assets:\u003C\\/strong> You do not have to worry about losing your house or car, unlike in some other debt-relief options.\u003C\\/li>\\r\\n \\t\u003Cli>\u003Cstrong>Stop collection calls and creditor actions:\u003C\\/strong> You will no longer have to feel a sense of panic whenever the phone rings again. Once a consumer proposal is accepted, your unsecured creditors will have to stop hassling you.\u003C\\/li>\\r\\n \\t\u003Cli>\u003Cstrong>Predictable payments:\u003C\\/strong> \u003Ca href=\\\"\\/blog\\/pros-and-cons-of-filing-a-consumer-proposal\\\">Expect no surprises with a consumer proposal \u003C\\/a>and based on what you can afford, so you can budget more easily.\u003C\\/li>\\r\\n \\t\u003Cli>\u003Cstrong>0% interest:\u003C\\/strong> Your interest charges are frozen on most debt, and you can expect 0% interest on your remaining debt.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003Ch2 aria-level=\\\"2\\\">What is Bankruptcy?\u003C\\/h2>\\r\\nNow let\\u2019s look at the other option that you have probably heard more about \\u2014bankruptcy\\r\\n\\r\\n\u003Ca href=\\\"\\/bankruptcy\\\">Bankruptcy\u003C\\/a>, on the other hand, is a way to get rid of most of your debt if paying it back just is not possible. It is more of a last-resort option when you need a clean slate, but it comes with certain trade-offs, like giving up some of your assets.\\r\\n\\r\\nMany people think bankruptcy may be their only option, but it is not! We recommend exploring all your options and getting professional advice before moving forward with bankruptcy.\\r\\n\u003Ch3 aria-level=\\\"3\\\">How Does Filing for Bankruptcy Work?\u003C\\/h3>\\r\\nWhen you file for bankruptcy, a Licensed Insolvency Trustee takes over and manages your case. Your debts are legally discharged, which means you are no longer required to pay them back.\\r\\n\\r\\nThey will handle things like selling off some of your assets (do not worry \\u2014 \u003Ca href=\\\"\\/blog\\/exempt-assets-in-bankruptcy\\\">there are exemptions for things like basic household items\u003C\\/a>). Once the process is complete, most of your unsecured debts are wiped out, giving you a fresh start.\\r\\n\u003Ch3 aria-level=\\\"3\\\">What Are the Eligibility Criteria for Bankruptcy?\u003C\\/h3>\\r\\nYou can file for bankruptcy with Farber if you are at least 18 years old, a Canadian resident or own property\\/have carried on a business within the last year, and your debts exceed the total value of your assets, or you are unable to repay your debts as they come due.\\r\\n\\r\\nAs with the consumer proposal, we recommend you speak with our team to talk about qualifications when considering if bankruptcy is right for you.\\r\\n\u003Ch3 aria-level=\\\"3\\\">What Happens When You Declare Bankruptcy?\u003C\\/h3>\\r\\n\u003Cul>\\r\\n \\t\u003Cli>\u003Cstrong>You might lose assets\u003C\\/strong>: Some of your belongings may need to be sold to repay creditors, but many essential items are protected and most of your debts are wiped out.\u003C\\/li>\\r\\n \\t\u003Cli>\u003Cstrong>Credit impact:\u003C\\/strong> Bankruptcy stays on your record for six to seven years, or up to 14 years if it is your second bankruptcy.\u003C\\/li>\\r\\n \\t\u003Cli>\u003Cstrong>Makes it harder to borrow again:\u003C\\/strong> If you are looking to borrow money in the future, like for a mortgage or to obtain a new credit card, it might be difficult with bankruptcy on your record.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\nSpeaking with a LIT can help you understand the pros and cons of bankruptcy and how it can affect you.\\r\\n\u003Ch2 aria-level=\\\"2\\\">Consumer Proposal vs. Bankruptcy: What is the Difference?\u003C\\/h2>\\r\\n\u003Ch3 aria-level=\\\"3\\\">How Each Option Affects Your Ability to Keep Assets\u003C\\/h3>\\r\\nIf keeping your house or car is important to you, a consumer proposal is probably the better choice. With bankruptcy, you might have to forfeit non-essential assets.\\r\\n\u003Ch3 aria-level=\\\"3\\\">How Debt Repayment Differs Between These Two Options\u003C\\/h3>\\r\\nWith a consumer proposal, you agree to repay part of your debt through a structured plan, but at a reduced amount. Bankruptcy, however, wipes out most unsecured debts entirely, giving you a fresh start.\\r\\n\u003Ch3 aria-level=\\\"3\\\">What Happens to Your Credit in Each Situation\u003C\\/h3>\\r\\nWhen it comes to a consumer proposal vs. bankruptcy, the former is a bit kinder to your credit score and only stays on your report for three years after you complete the repayment. Bankruptcy, on the other hand, \u003Ca href=\\\"https:\\/\\/www.rbcroyalbank.com\\/en-ca\\/my-money-matters\\/debt-and-stress-relief\\/bankruptcy\\/personal-bankruptcy\\/what-happens-to-your-credit-score-if-you-declare-bankruptcy\\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">sticks around longer\u003C\\/a> \\u2014 typically six to seven years.\\r\\n\u003Ch3 aria-level=\\\"3\\\">Comparing the Costs of Filing a Consumer Proposal or Bankruptcy\u003C\\/h3>\\r\\nBoth options come with fees, mostly for your Licensed Insolvency Trustee. In a consumer proposal, those fees are usually rolled into your monthly payments.\\r\\n\\r\\nBankruptcy can have additional costs, such as legal fees. The cost in Canada varies person-by-person. It is based on your monthly income, certain expenses, the size of your family unit and your assets.\\r\\n\\r\\nFees to a LIT for both consumer proposal and bankruptcy are federally regulated and deducted from the funds you contribute. It is best to book a free consultation with a LIT to go over the costs involved with either option.\\r\\n\u003Ch2 aria-level=\\\"2\\\">How Do You Decide Which One Is Right for You?\u003C\\/h2>\\r\\n\u003Ch3 aria-level=\\\"3\\\">Consider Your Financial Situation First\u003C\\/h3>\\r\\nIf you have valuable assets that you want to keep, a consumer proposal may be a better fit. Bankruptcy might be more suitable if you are struggling to make any payments at all. You will have to weigh out the pros and cons of each one depending on your financial situation. This also includes looking at the amount of debt you have and your ability to repay your debt or make regular payments.\\r\\n\u003Ch3 aria-level=\\\"3\\\">Think About Your Long-Term Financial Goals\u003C\\/h3>\\r\\nDo you want to get your credit back on track faster? A consumer proposal may help you do that since it has a shorter-lasting impact on your credit report. Bankruptcy gives you a fresh start, but it takes \u003Ca href=\\\"https:\\/\\/borrowell.com\\/blog\\/how-to-rebuild-your-credit-in-canada\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">longer to rebuild your credit\u003C\\/a>.\\r\\n\u003Ch3 aria-level=\\\"3\\\">Do Not Overlook the Emotional and Psychological Factors\u003C\\/h3>\\r\\nNavigating debt relief can bring up a lot of emotions, and it is important to prioritize your well-being along the way. While the thought of bankruptcy might feel overwhelming, especially with the possibility of losing assets, remember that you are taking a positive step toward regaining control of your finances.\\r\\n\\r\\nA consumer proposal can be a gentler option, allowing you to resolve your debts while maintaining more stability. No matter which path you choose, know that you are making a proactive choice to improve your financial future \\u2014 and that is something to be proud of!\\r\\n\u003Ch3 aria-level=\\\"3\\\">Always Seek Professional Advice from a Licensed Insolvency Trustee\u003C\\/h3>\\r\\nMaking this decision is not something you must do alone. In fact, you should not have to do it alone at all. We always recommend that you consult and seek advice from an insolvency professional.\\r\\n\\r\\nSpeaking with a Licensed Insolvency Trustee can help you evaluate all your options and choose the best path based on your unique financial situation. They will work with you to find a debt-relief solution that will reduce your debt stress and help you rebuild your financial future and relationship with money.\\r\\n\u003Ch2 aria-level=\\\"2\\\">Learn How Farber Can Help You Find the Right Debt Solution\u003C\\/h2>\\r\\nAt Farber Debt Solutions, we understand how overwhelming it can feel when debt takes control. If you need further help choosing between a consumer proposal vs. bankruptcy, our team of Licensed Insolvency Trustees is here to help guide you.\\r\\n\\r\\nWe will work with you to find the best option for your situation, so you can start building a brighter financial future. \u003Ca href=\\\"\\/book-a-consultation\\\">Book your free no-obligation consultation today\u003C\\/a> and take the first step toward gaining control of your finances!\",\"post_title\":\"Consumer Proposal or Bankruptcy: Which Option Is For You?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"bankruptcy-vs-consumer-proposal\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-12-30 06:32:30\",\"post_modified_gmt\":\"2025-12-30 11:32:30\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/bankruptcy-versus-a-consumer-proposal\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":2461,\"post_author\":\"6\",\"post_date\":\"2020-03-04 19:43:47\",\"post_date_gmt\":\"2020-03-05 00:43:47\",\"post_content\":\"\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-getting-out-of-debt-without-bankruptcy\\\">Getting Out of Debt Without Bankruptcy\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>When you are dealing with substantial amounts of debt, it can feel so stressful. You might see no way to solve your financial pressures. However, there are always things you can do to get yourself out of debt. Filing a bankruptcy is one option but it is usually considered the \\u201coption of last resort\\u201d after all other available options are considered. For many of us, a bankruptcy is something that may not be necessary. Let us look at some other options worth exploring:\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading {\\\"level\\\":3} -->\\r\\n\u003Ch3 id=\\\"h-cutting-costs\\\">Cutting Costs\u003C\\/h3>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>This is often a lot easier than we envision it might be. A quick review of a household budget can help you decide which expenses you can consider chopping or reducing. While it may not be possible to reduce some of your fixed expenses (such as your rent or mortgage payments each month) you can have some control over your variable expenses (such as groceries, clothing, transportation, entertainment, etc.). Once you have found ways to cut down your spending, put the money you end up saving towards your debt repayment or (after your debt has been cleared up) that all-important emergency savings account.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading {\\\"level\\\":3} -->\\r\\n\u003Ch3 id=\\\"h-speaking-with-creditors\\\">Speaking with Creditors\u003C\\/h3>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Our first instinct is to avoid our creditors. However, speaking with them could provide you with an excellent opportunity to negotiate any debt owing to them. If you genuinely explain to your creditors that you are having difficulty affording your expenses and paying down your debt, some, or all of them, may be willing to work with you. Creditors could give you more time to pay back your debt and\\/or they may consider reducing the amount of interest you pay. They may even offer to settle your debt for a lesser amount than owed. It is amazing how one quick phone call might save you thousands of dollars.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>In most cases, creditors get an exceedingly small payment, if any, when a person files for bankruptcy. So, creditors might be willing to negotiate instead of receiving virtually nothing from the Trustee if you file for bankruptcy protection.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading {\\\"level\\\":3} -->\\r\\n\u003Ch3 id=\\\"h-credit-counselling-and-debt-settlement\\\">Credit Counselling and Debt Settlement\u003C\\/h3>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Many credit counselling services in Canada offer debt management programs otherwise known as debt settlement plans. Through these plans, the debt settlement company negotiates with your creditors to convince them to either reduce the interest owed or accept less of the total amount of debt owed.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Take note that many debt settlement companies are for-profit organizations (despite the \\u201cnot-for-profit\\\" signs on their doors and websites), and some might make unrealistic promises to you when selling you on their services.\\u00a0 It is important to do some thorough research and ensure you are working with a reputable agency before you sign the contract. Creditors know they are not legally required to work with a debt settlement firm or a credit counsellor (unlike a Licensed Insolvency Trustee, as our firm is).\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Some creditors working with the credit counsellor may agree to reduce the debt owed to them, but some could outright refuse to negotiate and can then pursue you on their own. You may also be required to pay an upfront fee to work with these credit counselling organizations. The fee is charged up front, before any work has been done, so even if the creditors do not agree to negotiate you have still had to pay something. It is also important to be aware that government debt, such as CRA (the Canada Revenue Agency) tax debt or even student loan debt, cannot be dealt with through a credit counselling service. Only a Licensed Insolvency Trustee such as Farber can assist you with those types of debts.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading {\\\"level\\\":3} -->\\r\\n\u003Ch3 id=\\\"h-debt-consolidation\\\">Debt Consolidation\u003C\\/h3>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Debt consolidation is a process that involves obtaining a loan from one lender to pay off various other creditors. The goal of this process is to get a debt consolidation loan with a lower overall interest rate than your current debts. If you are successful in qualifying for such a loan, you will save money on interest payments over time and resolve your debt faster.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>However, it can be difficult to get a low interest rate on a debt consolidation loan (especially if you have poor credit due to missed payments). Also, while you may save money on interest, you will still be responsible for paying back 100% of the debt that you owe.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading {\\\"level\\\":3} -->\\r\\n\u003Ch3 id=\\\"h-consumer-proposal\\\">Consumer Proposal\u003C\\/h3>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>You have the legal right in Canada to make a formal proposal to your creditors. This is called a Consumer Proposal. It is a legal process designed to allow you to formally settle your debts, often for a portion of the outstanding debt amount and without further interest. For example, one recent proposal offered $12,000 to the creditors on a total debt load of $40,000 and was accepted by the creditors.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>A Consumer Proposal will protect you from collection agencies and legal actions by your creditors through the courts. A Consumer Proposal can last up to five years and involve a manageable monthly amount or other terms of repayment (such as a lump sum settlement). Creditors are given 45 days (about 1 and a half months) from the date of filing to vote on whether to accept the Consumer Proposal \\u201cas is\\u201d or request a larger sum.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Licensed Insolvency Trustees (formerly known as Bankruptcy Trustees) are the only professionals licensed to administer Consumer Proposal or Bankruptcy processes in Canada. However, this is not the only way they can advise you on how to handle your debt pressures. They must provide you with details of all the options available to you.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Most trustees offer a free consultation, and if a proposal is filed then all the Trustee\\u2019s fees are taken from the proposal payments you make each month. In other words \\u2013 you do not pay the Trustee separately.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Speaking with a trustee can be an effective way to get back on a road to financial health. If you feel you need some assistance with your debts, and would like to avoid bankruptcy, if possible, please click on the FREE CONSULTATION button, below, or give us a call today. We are here to listen \\u2013 and to help!\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\",\"post_title\":\"Getting Out of Debt Without Having to File for Bankruptcy\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"how-to-get-out-of-debt-without-filing-for-bankruptcy\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-01-10 07:37:58\",\"post_modified_gmt\":\"2025-01-10 12:37:58\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/how-to-get-out-of-debt-without-filing-for-bankruptcy\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":2422,\"post_author\":\"6\",\"post_date\":\"2023-05-09 16:13:53\",\"post_date_gmt\":\"2023-05-09 20:13:53\",\"post_content\":\"\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Debt is a difficult thing to talk about. Even in 2023, debt is still associated with feelings of shame \\u2013 despite \u003Ca href=\\\"https:\\/\\/www.canada.ca\\/en\\/financial-consumer-agency\\/programs\\/research\\/canadian-financial-capability-survey-2019.html\\\" target=\\\"_blank\\\" rel=\\\"noreferrer noopener\\\">almost three-quarters of Canadians carrying some type of debt\u003C\\/a>, according to Stats Canada.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>If you're not sure if you're \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/blog\\/good-debt-vs-bad-debt-how-to-know-the-difference\\/\\\" rel=\\\"noreferrer noopener\\\">carrying good or bad debt\u003C\\/a> or are just finding your situation too overwhelming to deal with on your own, our team is always here to listen \\u2013 and it starts with a call. But, we know that picking up the phone can be scary, and you might be hesitant.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>So, we spoke to \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/person\\/graeme-whitehead\\/\\\" rel=\\\"noreferrer noopener\\\">Graeme Whitehead\u003C\\/a>, a partner and Vice President of Central Operations and a Licensed Insolvency Trustee at Farber Debt Solutions (who's been in the industry for 22 years!) to get the scoop.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Here is your step-by-step guide to what you can expect from your free consultation.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-step-1-make-the-initial-call-or-inquiry\\\">Step 1: Make the initial call or inquiry\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>First things first. You need to \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/contact-us\\/new-customers\\/\\\" rel=\\\"noreferrer noopener\\\">reach out to us online or make the call\u003C\\/a>. We know it's a difficult thing to do, and it's a big first step. But our approach is based on over 40 years of experience, and our team is here to listen without judgement.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\\"We treat the call like we're in an emergency room,\\\" said Whitehead. \\\"We realize that time is of the essence, and nobody wants to wait \\u2013 so we do live transfers if someone is available, or schedule an appointment for the same day, or the next, whatever the person would like.\\\"\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>By just taking that first step, you'll be able to learn about all of the debt solutions available to you for free, with no pressure or obligation to move forward.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-step-2-get-your-first-free-consultation\\\">Step 2: Get your first free consultation\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Next, you'll have your first consultation. According to Whitehead, most people haven't told anybody about their debt \\u2013 including their spouses. So, it's our job to listen, which may sound simple, but just listening can provide them with a \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/blog\\/debt-mental-health-happiness\\/\\\" rel=\\\"noreferrer noopener\\\">massive sense of relief.\u003C\\/a>\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\\"I was meeting with one person, and he told me that he was really ashamed and that he felt like such a loser,\\\" said Whitehead. \\\"But I said to him, 'I can tell you why you're not a loser \\u2013 losers don't pick up the phone, losers don't book a meeting, losers don't talk about it \\u2013 losers do nothing.'\\\"\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Your consultation with us is also a safe space for you to share your concerns with an experienced professional. Our team is available by video, phone, or in person, so you can chat with us in whichever way you feel most comfortable.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\\"There's no shame in getting professional guidance,\\\" said Whitehead. \\\"We look forward to helping someone feel better during that first initial meeting \\u2013 it's like a big, giant exhale, like a physical burden being released.\\\"\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-step-3-additional-free-consultations-as-necessary\\\">Step 3: Additional free consultations, as necessary\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Our team takes the time to fully understand what you're going through. We also need some key information from you to find the best solution.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>For example, maybe you just wanted to start the conversation and get comfortable first, or you don't have all the information ready \\u2013 and that's OK. Our team requires pay information, a full list of who you owe money to, account numbers, information about your investments, and information about your home if you own one. So, it could take a few follow-up appointments to determine the right solution. And, we take the time necessary to go through all of your options with you.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\\"We present people all of their options in bite-sized chunks so that they can understand it,\\\" said Whitehead. \\\"That's also why we tend to have multiple meetings \\u2013 we don't want to overwhelm anyone.\\\"\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-step-4-presenting-the-best-debt-solution-for-you\\\">Step 4: Presenting the best debt solution for you\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Lastly, we'll go over what we believe is the best solution for you. It's important to note that it might be a service with us, such as a \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/how-we-help\\/consumer-proposal\\/\\\" rel=\\\"noreferrer noopener\\\">Consumer Proposal\u003C\\/a>, and it might not \\u2013 and there\\u2019s no pressure either way.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\u201cLet\\u2019s say there\\u2019s a credit counselling option that\\u2019s a better fit, we\\u2019ll send them there,\\u201d said Whitehead. \\u201cWe\\u2019ll do what\\u2019s right by each person, because we believe that\\u2019s a good business practice.\\u201d\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>Farber Debt Solutions is legally obligated to share all of your options, and we\\u2019re more than happy to provide you with that guidance on a human level.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:heading -->\\r\\n\u003Ch2 id=\\\"h-the-bottom-line\\\">The bottom line\u003C\\/h2>\\r\\n\u003C!-- \\/wp:heading -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>We know reaching out to book an initial consultation can be a huge first step. But this is an important part of your life, and we would love to help you find a better solution to deal with your debt.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>While people often tell Whitehead that his job sounds depressing, he says it's, in fact, quite the opposite.\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\\\"Maybe it would be sad if we didn't have the tools to help people, but we have really great tools,\\\" said Whitehead. \\\"We look at it as so much more, we can save people's marriages or houses, and that's powerful.\\\"\\u00a0\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>\u003Cbr \\/>If you're feeling stressed or overwhelmed by your debt, \u003Ca href=\\\"https:\\/\\/www.afarber.com\\/contact-us\\/\\\" rel=\\\"noreferrer noopener\\\">contact us\u003C\\/a> at Farber Debt Solutions today. We're here to listen and give you the tools to help you feel confident and relieved that a solution for your debt is possible.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\",\"post_title\":\"Book a Free Consultation for Expert Debt Solutions\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"free-consultation-debt-solutions\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-01-10 07:30:30\",\"post_modified_gmt\":\"2025-01-10 12:30:30\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/free-consultation-debt-solutions\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":2475,\"post_author\":\"6\",\"post_date\":\"2018-08-16 21:30:00\",\"post_date_gmt\":\"2018-08-17 01:30:00\",\"post_content\":\"\u003C!-- wp:heading -->\\r\\n\u003Cp>We have all been there\\u2014\u003Ca href=\\\"\\/blog\\/unexpected-expenses\\\">an unexpected bill shows up\u003C\\/a>, payday feels like it is a million years away, and you are already trying to find relief through \u003Ca href=\\\"https:\\/\\/www.farber.ca\\/debt-relief\\\">debt solutions in Canada\u003C\\/a> to help tackle your load.\u003C\\/p>\\r\\n\u003Cp>You may be wondering how you are going to make it through the week without everything falling apart. Enter payday loans, flashing promises of quick cash and no hassle. Tempting, right?\u003C\\/p>\\r\\n\u003Cp>But let\\u2019s pump the brakes for a second. Payday loans might look like a quick fix, but they can seriously mess up your finances in the long run. If you are stressed about money, there are better options than jumping into the payday loan cycle. Let\\u2019s get into why payday loans are bad news and what you can do instead.\u003C\\/p>\\r\\n\u003Ch2>Why Payday Loans Are Risky\u003C\\/h2>\\r\\n\u003Cp>Payday loans might sound like a lifesaver at first. They are marketed as quick, no-fuss ways to get cash when you are strapped. But here is the catch\\u2026 They come with very high interest rates, sneaky fees, and a knack for trapping people in a never-ending loop of debt.\u003C\\/p>\\r\\n\u003Ch3>The High Costs of Payday Loans\u003C\\/h3>\\r\\n\u003Cp>Payday loans charge some of the highest interest rates you will ever see. In Canada, payday loan lenders can legally charge up to $15 for every $100 borrowed. Does not sound too bad? Think again\\u2014that works out to an annual percentage rate (APR) of over 390%. If you compare that to a credit card cash advance, which usually has an interest rate closer to 20%, you will start to see the problem.\u003C\\/p>\\r\\n\u003Cp>On top of that, payday lenders love to charge origination fees, late payment penalties, and other hidden charges that can quickly add up. Origination fees alone can make the cost of borrowing much higher than you anticipated.\u003C\\/p>\\r\\n\u003Cp>You might think you are borrowing $300 to get you through the week, but by the time you pay interest, origination fees, and late penalties, you are on the hook for way more than you expected.\u003C\\/p>\\r\\n\u003Cp>Let\\u2019s not forget that payday loans are short-term loans by design, usually requiring full repayment within two weeks or by your next paycheque. Unlike installment loans that allow you to make monthly payments over time, payday loans can eat up your entire paycheque, leaving you scrambling to cover other essential expenses.\u003C\\/p>\\r\\n\u003Ch3>How Payday Loans Trap Borrowers in Debt Cycles\u003C\\/h3>\\r\\n\u003Cp>Here is the ugly truth about payday loans. They are designed to keep you borrowing.\u003C\\/p>\\r\\n\u003Cp>Let\\u2019s say you take out a loan to cover this month\\u2019s rent. When payday rolls around, you realize the repayment amount eats up your entire paycheque. So, what do you do? Take out another payday loan. And just like that, you are stuck in a payday loan cycle that is hard to escape.\u003C\\/p>\\r\\n\u003Cp>This cycle happens because payday loans do not address the root of the financial problem\\u2014they just slap a bandage on it. Borrowers often end up juggling multiple debts, paying interest charges, and watching their finances spiral out of control.\u003C\\/p>\\r\\n\u003Ch2>What Happens If You Cannot Repay a Payday Loan?\u003C\\/h2>\\r\\n\u003Cp>So, what happens if you cannot pay back a payday loan on time? It is not pretty. Falling behind on payments can lead to serious troubles that can harm your finances and your peace of mind.\u003C\\/p>\\r\\n\u003Ch3>Late Fees and Payday Loan Penalties\u003C\\/h3>\\r\\n\u003Cp>Miss a payment? Most of these loans charge high fees for late payments. And if the lender tries to take the repayment directly from your bank account and there is not enough money, you could also get hit with overdraft protection fees from your bank. These extra costs snowball quickly, making it even harder to get ahead.\u003C\\/p>\\r\\n\u003Ch3>Impact on Credit Score and Financial Health\u003C\\/h3>\\r\\n\u003Cp>Payday loans do not usually help you build credit, even if you pay them off on time. But if you fail to repay it, lenders can report it to the credit bureaus, and this will hurt your credit score.\u003C\\/p>\\r\\n\u003Cp>You might face calls from collection agencies, legal action, or even \u003Ca href=\\\"\\/blog\\/how-to-stop-a-wage-garnishments\\\">wage garnishment\u003C\\/a>, making it even harder to get back on your feet.\u003C\\/p>\\r\\n\u003Ch3>The Psychological Toll of Payday Loans\u003C\\/h3>\\r\\n\u003Cp>It is not just your wallet that suffers: your mental health can take a hit too. The stress of juggling multiple debts, avoiding collections, and feeling trapped in a financial mess can lead to anxiety, depression, and \u003Ca href=\\\"\\/blog\\/how-to-stop-debt-from-keeping-you-up-all-night\\\">sleepless nights\u003C\\/a>. Payday loans might promise quick relief, but the emotional cost\\u2014and interest rates\\u2014often outweigh the temporary fix.\u003C\\/p>\\r\\n\u003Cp>Being stuck in a payday loan cycle can make you feel powerless, ashamed, or overwhelmed. It is important to remember that you are not alone, and there are better solutions out there.\u003C\\/p>\\r\\n\u003Ch2>Payday Loan Alternatives\u003C\\/h2>\\r\\n\u003Cp>If payday loans are such a bad deal, what can you do instead? The good news is there are \\u201csafer\\u201d alternatives that can help you get through tough times without falling into a payday loan trap.\u003C\\/p>\\r\\n\u003Ch3>Get a Personal Loan from Banks or Credit Unions\u003C\\/h3>\\r\\n\u003Cp>Unlike payday loans, getting a personal loan, like the ones from a bank or credit union, has a much lower interest rate and longer repayment terms. If you have a steady income and good credit, a personal loan can be a good option.\u003C\\/p>\\r\\n\u003Cp>Even if you do not have a good credit score, some banks or credit unions may offer secured loans that use collateral to approve your application.\u003C\\/p>\\r\\n\u003Ch3>Borrow Money from Friends or Family\u003C\\/h3>\\r\\n\u003Cp>It might feel awkward to ask for help, but if you need to borrow money from someone, pick someone you trust to help you with your payday loan debt. Just be upfront about your repayment plan to avoid any misunderstandings or strained relationships.\u003C\\/p>\\r\\n\u003Ch3>Payday Loan Alternatives You Might Not Have Considered\u003C\\/h3>\\r\\n\u003Cp>If the above options do not work for you, there are other ways to avoid payday loans:\u003C\\/p>\\r\\n\u003Cul>\\r\\n\u003Cli>\u003Cstrong>Overdraft Protection:\u003C\\/strong>\\u202fMany banks offer overdraft protection for your chequing account. While there may still be fees, they are usually much lower than payday loan charges.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Cash Advance Apps:\u003C\\/strong>\\u202fSome apps offer small cash advances against your upcoming paycheque without the excessive fee payday loans charge. These can be a safer way to cover short-term gaps.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Peer-to-Peer Lending:\u003C\\/strong>\\u202fPlatforms that connect borrowers with individual lenders can provide lower interest rates than payday lenders.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003Cp>It is important to understand your financial situation and the risks of additional loans. We recommend speaking with a \u003Ca href=\\\"\\/why-a-licensed-insolvency-trustee\\\">Licensed Insolvency Trustee\u003C\\/a> to understand your options before taking on more debt that you cannot handle.\u003C\\/p>\\r\\n\u003Ch2>How to Avoid Payday Loans\u003C\\/h2>\\r\\n\u003Cp>The best way to deal with payday loans is to avoid needing them in the first place. While that is easier said than done, there are some strategies you can use to help you manage your finances and avoid the temptation of short-term, payday loans.\u003C\\/p>\\r\\n\u003Ch3>Build an Emergency Savings Fund\u003C\\/h3>\\r\\n\u003Cp>An emergency fund is your financial safety net\\u2014it is what keeps you from turning to payday lenders when unexpected expenses pop up. Even if you are living paycheque to paycheque, building a fund is possible with small, consistent steps.\u003C\\/p>\\r\\n\u003Ch3>Explore Income Assistance Programs\u003C\\/h3>\\r\\n\u003Cp>When you are in a financial bind, turning to income assistance programs is a better option than taking out a payday loan. These programs can provide the support you need to get back on your feet.\u003C\\/p>\\r\\n\u003Cul>\\r\\n\u003Cli>\u003Cstrong>Utility Relief Programs:\u003C\\/strong>\\u202fMany utility companies offer programs to help with heating, electricity, and water bills if you are struggling to keep up. Reach out to your provider to see what is available.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Government Assistance:\u003C\\/strong>\\u202fPrograms like child benefits, housing subsidies, or unemployment support can provide short-term financial relief. Look into your provincial or federal government\\u2019s resources to see what you qualify for.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Local Food Banks and Nonprofits\u003C\\/strong>:\\u202fIf grocery bills are eating into your budget, food banks can help lighten the load, freeing up cash for other essential expenses.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003Cp>Taking advantage of these resources is a way to soothe your financial situation without digging yourself deeper into debt.\u003C\\/p>\\r\\n\u003Ch3>Learn to Budget\u003C\\/h3>\\r\\n\u003Cp>Budgeting is \u003Ca href=\\\"\\/blog\\/how-to-avoid-overspending\\\">an important tool\u003C\\/a>\\u202ffor anyone who overspends or simply wants to avoid financial stress. A budget gives you control over your money and helps you prioritize your spending.\u003C\\/p>\\r\\n\u003Cp>You can use a budgeting app on your phone to monitor your spending. Alternatively, go old-school with a notebook and write down every expense. Seeing where your money goes can be eye-opening and help you figure out what areas to cut back.\u003C\\/p>\\r\\n\u003Cp>Make savings a non-negotiable part of your budget. Treat it like a bill you have to pay every month. When you prioritize saving, you are less likely to rely on loans or credit cards during tough times.\u003C\\/p>\\r\\n\u003Ch2>Break the Cycle of Living Paycheque to Paycheque\u003C\\/h2>\\r\\n\u003Cp>If you feel like there is never enough money left at the end of the month, it might be time to rethink your financial habits. Here are some tips to help:\u003C\\/p>\\r\\n\u003Cul>\\r\\n\u003Cli>\u003Cstrong>Increase Your Income:\u003C\\/strong> Side hustles like freelance work, tutoring, or ridesharing can bring in extra money to pad your budget.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Focus on Debt Repayment:\u003C\\/strong> If you have debt piling up, we recommend reaching out to a \u003Ca href=\\\"\\/blog\\/what-is-a-licensed-insolvency-trustee\\\">Licensed Insolvency Trustee\u003C\\/a> to understand your options. Once you tackle your debt and relieve yourself of that stress, you can focus on rebuilding your financial health to ensure that you do not have to rely on payday loans.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Set Clear Financial Goals:\u003C\\/strong> Whether it is saving for a vacation or building your emergency fund, having a clear goal can make all the difference. Goals give your savings a purpose, making it easier to stay disciplined and motivated.\u003C\\/li>\\r\\n\u003Cli>\u003Cstrong>Build a Support System:\u003C\\/strong> Talk to a trusted friend or family member about your financial goals, join a support group, or consult with the \u003Ca href=\\\"\\/our-team\\\">Farber team\u003C\\/a>. Having someone to share your journey with can make all the difference.\u003C\\/li>\\r\\n\u003C\\/ul>\\r\\n\u003Ch2>How Farber Can Help\u003C\\/h2>\\r\\n\u003Cp>Payday loans might seem like a quick fix, but the long-term costs far outweigh the short-term relief. By exploring payday loan alternatives, building healthy financial habits, and getting support from professionals like Farber, you can take control of your finances and leave payday lenders in the dust.\u003C\\/p>\\r\\n\u003Cp>But, if you are already stuck in the payday loan cycle, you do not have to face it alone. Whether you are dealing with multiple debts, bad credit, or payday loans charge after charge, we can guide you toward real solutions.\u003C\\/p>\\r\\n\u003Cp>\u003Ca href=\\\"\\/book-a-consultation\\\">Connect with us today for a free consultation\u003C\\/a>\\u202fso we can help you get back on track!\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\",\"post_title\":\"Payday Loan Alternatives: Safer Ways to Borrow Money\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"payday-loans-alternatives\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-12-30 06:29:10\",\"post_modified_gmt\":\"2025-12-30 11:29:10\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/payday-loans-alternatives-why-you-should-avoid-them\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":2501,\"post_author\":\"6\",\"post_date\":\"2015-02-03 23:37:44\",\"post_date_gmt\":\"2015-02-04 04:37:44\",\"post_content\":\"\u003C!-- wp:paragraph -->\\r\\n\u003Cp>We recently filed a Consumer Proposal (CP) for a gentleman who had a sizable amount of debt, mostly because of his failed business. This man was dealing with a combination of credit card debt, CRA (Canada Revenue Agency) tax and HST debt and a credit union loan taken out through the business he had owned, but which he had personally guaranteed.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>At the time of the filing of the Consumer Proposal, he did not believe any of his debt had been guaranteed by a third party. However, after filing his Consumer Proposal he remembered the credit union loan he had arranged had also been guaranteed by a friend. This third-party guarantee had been required by the credit union so the company could qualify for the loan.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>He was obviously worried about the impact his filing of the Proposal would have on his friend and spoke with us on a few occasions regarding his friend\\u2019s liability. He had originally hoped that by filing a Consumer Proposal, his friend could not be held responsible for the debt. We explained that even though he had filed a Consumer Proposal, and the credit union had voted in favor of his proposal, his friend was still liable for the credit union loan debt he had guaranteed. If we had been aware of the joint guarantee prior to the filing of the Proposal we would have cautioned him about that. Unfortunately, he forgot about the guarantee until the Proposal was already filed and underway.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>We recommended that his friend consult with a lawyer to see if there were any legal grounds on which to challenge the enforceability of the guarantee. We were able to help further by referring a lawyer specializing in debt issues that the friend could use. We also suggested that if his friend were liable for the debt (apparently his friend had the financial means to cover the debt amount), that the friend would take the place of the credit union in the proposal, which provides for an exceedingly high return to creditors. So, in the end, the friend might not be out as much money as my client had initially feared.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The debtor told me his friend met with the lawyer, who had suggested the friend pay out the credit union and take back an assignment of the credit union\\u2019s debt, which means the friend became the debtor\\u2019s creditor for money paid to the Credit Union. By doing this the friend would be entitled to receive a portion of his payments made under the Consumer Proposal.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>For illustrative purposes, let us assume that the guarantee was for $10,000 and the Consumer Proposal was paying 50 cents on the dollar. The friend would pay the Credit Union $10,000 and in turn have the right to receive $5,000 paid out on the Proposal, thus leaving him short $5,000.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>The debtor was quite disappointed that he had impacted his friend and his finances in this way but was appreciative there was a way of ensuring his friend was able to get back much of the funds paid to settle the debt. This situation is an excellent example of how a Consumer Proposal can be a solution that offers a fair amount of flexibility while helping to resolve a complex debt situation.\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\\r\\n\\r\\n\u003C!-- wp:paragraph -->\\r\\n\u003Cp>At Farber we are experts at crafting successful Consumer Proposals for our clients. We file thousands of Proposals every year and each one is unique to that clients\\u2019 situation and combination of creditors. We can help you, too. Please CLICK BELOW TO ARRANGE A FREE CONSULTATION or give us a call today. We are here to listen \\u2013 and to help!\u003C\\/p>\\r\\n\u003C!-- \\/wp:paragraph -->\",\"post_title\":\"Can You Get a Personal Loan During a Consumer Proposal?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"personal-loan-during-consumer-proposal-canada\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-01-10 07:30:42\",\"post_modified_gmt\":\"2025-01-10 12:30:42\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/blog\\/loan-guarantees-and-the-impact-of-filing-a-consumer-proposal\\/\",\"menu_order\":0,\"post_type\":\"blog\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"}],\"anchorId\":\"\"},{\"fieldGroupName\":\"FaqAccordion\",\"introduction\":{\"supertitle\":\"\",\"heading\":\"Frequently asked questions\",\"text\":\"Get answers to the most commonly asked questions about debt-relief solutions, debt terminology, budgeting and more.\"},\"type\":\"faq\",\"accordions\":[{\"title\":\"Lorem ipsum\",\"content\":\"\u003Cp>Suspendisse at blandit condimentum morbi. Eget eget in lobortis egestas. Dui ac tempus tincidunt lorem tortor. Eget dolor in ipsum amet praesent. Consectetur consequat scelerisque id tristique faucibus maecenas at aliquet odio. Mattis ac cras etiam elit nisl orci.\u003Cbr \\/>\\nAccumsan fames ultricies leo volutpat morbi. Est nisl non eleifend enim. Rhoncus viverra vulputate ac vestibulum sed accumsan id donec. Lectus accumsan phasellus pharetra gravida nibh. Amet interdum libero nulla ultricies convallis. Diam eros volutpat posuere libero at natoque eu. Lectus donec sed tincidunt adipiscing arcu neque. In felis hendrerit tristique porttitor. Nulla leo egestas et risus ullamcorper consectetur malesuada. Faucibus mauris vitae pharetra tellus. Sit habitant morbi sed nisl metus platea eget scelerisque.\u003C\\/p>\\n\"},{\"title\":\"How do you know if you have too much debt?\",\"content\":\"\u003Cp>\u003Cspan style=\\\"font-weight: 400;\\\">Each financial situation is unique. What could be considered serious debt problems for one person might be fine for someone else. Here\\u2019s how to recognize the warning signs about having too much debt:\u003C\\/span>\u003C\\/p>\\n\u003Cul>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Struggling to pay your debts and expenses each month\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Only making the minimum payments\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Repaying your debt is causing you stress\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Hiding your debt from loved ones\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Receiving calls from creditors or collection agencies\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Using one credit card to repay debts on another\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Missing payments or making payments late\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Taking out new loans to afford to repay your current debts\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Don\\u2019t have a budget or can\\u2019t stick to a budget\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Not sure how much debt you have\u003C\\/span>\u003C\\/li>\\n\u003Cli style=\\\"font-weight: 400;\\\" aria-level=\\\"1\\\">\u003Cspan style=\\\"font-weight: 400;\\\">Regularly use payday loans\u003C\\/span>\u003C\\/li>\\n\u003C\\/ul>\\n\"}],\"faqs\":[{\"ID\":2620,\"post_author\":\"6\",\"post_date\":\"2024-06-21 14:45:20\",\"post_date_gmt\":\"2024-06-21 18:45:20\",\"post_content\":\"Making the first step to gain control of your debt can feel intimidating. But sharing your concerns with one of our team members means you\\u2019ll receive compassionate, non-judgmental advice that can help you make informed financial decisions. Here are some of the other benefits:\\r\\n\u003Cul>\\r\\n \\t\u003Cli>Your consultation is completely free of charge\u003C\\/li>\\r\\n \\t\u003Cli>Feeling no pressure or obligation\u003C\\/li>\\r\\n \\t\u003Cli>Confidential and comfortable space\u003C\\/li>\\r\\n \\t\u003Cli>Exploring all available solutions\u003C\\/li>\\r\\n \\t\u003Cli>Finding relief from stress and anxiety knowing a solution is within reach\u003C\\/li>\\r\\n\u003C\\/ul>\",\"post_title\":\"What are the benefits of a free consultation?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"what-are-the-benefits-of-a-free-consultation\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-12-24 10:40:39\",\"post_modified_gmt\":\"2025-12-24 15:40:39\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/?post_type=faq&p=2620\",\"menu_order\":0,\"post_type\":\"faq\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":469,\"post_author\":\"6\",\"post_date\":\"2024-06-13 15:53:43\",\"post_date_gmt\":\"2024-06-13 19:53:43\",\"post_content\":\"A consumer proposal significantly reduces most unsecured debts you have, including:\\r\\n\u003Cul>\\r\\n \\t\u003Cli>Credit card debt\u003C\\/li>\\r\\n \\t\u003Cli>Tax debt\u003C\\/li>\\r\\n \\t\u003Cli>Student loans (if 7 years have passed since you were last a student)\u003C\\/li>\\r\\n \\t\u003Cli>Personal loans\u003C\\/li>\\r\\n \\t\u003Cli>Lines of credit\u003C\\/li>\\r\\n \\t\u003Cli>Payday loans\u003C\\/li>\\r\\n\u003C\\/ul>\",\"post_title\":\"What types of debt can I include in a consumer proposal?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"what-types-of-debt-can-i-include-in-a-consumer-proposal\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2024-06-18 09:38:05\",\"post_modified_gmt\":\"2024-06-18 13:38:05\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/?post_type=faq&p=469\",\"menu_order\":0,\"post_type\":\"faq\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":475,\"post_author\":\"6\",\"post_date\":\"2024-06-14 08:56:49\",\"post_date_gmt\":\"2024-06-14 12:56:49\",\"post_content\":\"A consumer proposal is a formal agreement between you and your creditors that\\u2019s submitted on your behalf by a LIT. It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing \\u2013 as much as an 80% debt saving. Most importantly, it allows you to retain assets, such as your car and your home.\\r\\n\\r\\nA bankruptcy is a legal process in Canada legislated under the Bankruptcy and Insolvency Act (BIA) that\\u2019s designed to give a debtor a fresh start. A bankruptcy in Canada can only be filed with a LIT. With bankruptcy, you surrender your assets to the LIT for the general benefit of your creditors. However, you do not lose everything when you file a bankruptcy. Certain exemptions permit you to keep some assets.\",\"post_title\":\"What\\u2019s the difference between a consumer proposal and bankruptcy?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"whats-the-difference-between-a-consumer-proposal-and-bankruptcy\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2024-07-22 07:26:36\",\"post_modified_gmt\":\"2024-07-22 11:26:36\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/?post_type=faq&p=475\",\"menu_order\":0,\"post_type\":\"faq\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":476,\"post_author\":\"6\",\"post_date\":\"2024-06-14 08:57:14\",\"post_date_gmt\":\"2024-06-14 12:57:14\",\"post_content\":\"There are two types of debt consolidation \\u2013 high-interest debt consolidation loans and interest-free consumer proposals.\\r\\n\\r\\nMany people know about debt consolidation loans, but know less about an interest-free form of debt consolidation called a consumer proposal. It\\u2019s a better way to consolidate and reduce your debt in many situations. We do not provide loans. If you\\u2019re looking for a loan, we suggest you speak to your bank first to see if you qualify for one.\\r\\n\\r\\nFor many Canadians, high-interest and hidden-fee debt consolidation loans can lead to even more financial stress and payments that even exceed the original debt. A consumer proposal is a federally regulated program designed to help Canadians reduce and eliminate debt without loans and rebuild their financial security. A debt consolidation loan does not eliminate interest, stop collection calls, wage garnishment, or offer the legal protection a consumer proposal can.\",\"post_title\":\"How does debt consolidation work?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"how-does-debt-consolidation-work\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2024-07-22 07:32:56\",\"post_modified_gmt\":\"2024-07-22 11:32:56\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/?post_type=faq&p=476\",\"menu_order\":0,\"post_type\":\"faq\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"},{\"ID\":474,\"post_author\":\"6\",\"post_date\":\"2024-06-14 08:56:06\",\"post_date_gmt\":\"2024-06-14 12:56:06\",\"post_content\":\"Most people have some debt, usually in the form of a mortgage, car loan or line of credit. But how do you know when it\\u2019s too much? Here are a few ways to tell if you have too much debt.\\r\\n\u003Cul>\\r\\n \\t\u003Cli>Can\\u2019t pay monthly expenses without a credit card\\/line of credit\u003C\\/li>\\r\\n \\t\u003Cli>Only making minimum payments every month\u003C\\/li>\\r\\n \\t\u003Cli>Taking out more loans to pay monthly expenses\u003C\\/li>\\r\\n \\t\u003Cli>Receiving calls from creditors\u003C\\/li>\\r\\n \\t\u003Cli>Missed payments\u003C\\/li>\\r\\n \\t\u003Cli>Not sure how much debt you have\u003C\\/li>\\r\\n \\t\u003Cli>Regularly use overdraft protection on your bank account\u003C\\/li>\\r\\n \\t\u003Cli>Feeling stressed or worried about your debt\u003C\\/li>\\r\\n \\t\u003Cli>Hiding your debt or your spending\u003C\\/li>\\r\\n\u003C\\/ul>\",\"post_title\":\"How do you know if you have too much debt?\",\"post_excerpt\":\"\",\"post_status\":\"publish\",\"comment_status\":\"closed\",\"ping_status\":\"closed\",\"post_password\":\"\",\"post_name\":\"how-do-you-know-if-you-have-too-much-debt\",\"to_ping\":\"\",\"pinged\":\"\",\"post_modified\":\"2025-03-06 06:14:50\",\"post_modified_gmt\":\"2025-03-06 11:14:50\",\"post_content_filtered\":\"\",\"post_parent\":0,\"guid\":\"https:\\/\\/www.farber.ca\\/?post_type=faq&p=474\",\"menu_order\":0,\"post_type\":\"faq\",\"post_mime_type\":\"\",\"comment_count\":\"0\",\"filter\":\"raw\"}],\"button\":{\"title\":\"More FAQs\",\"url\":\"https:\\/\\/www.farber.ca\\/faq\\/\",\"target\":\"\"},\"enableSeoSchema\":false,\"anchorId\":\"faqs\"}]",{"pageNavigation":13},"default",{"title":15,"fullHead":16,"metaRobotsNoindex":17,"metaRobotsNofollow":18},"Debt Relief Services in Canada - Regain Financial Stability","\u003C!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https://yoast.com/product/yoast-seo-wordpress/ -->\n\u003Cmeta name=\"description\" content=\"Explore our Debt Relief Services in Canada. Our expert solutions help you reduce debt, manage finances, and achieve long-term stability. Learn more today!\" />\n\u003Clink rel=\"canonical\" href=\"/debt-relief/\" />\n\u003Cmeta property=\"og:locale\" content=\"en_US\" />\n\u003Cmeta property=\"og:type\" content=\"article\" />\n\u003Cmeta property=\"og:title\" content=\"Debt Relief Services in Canada - Regain Financial Stability\" />\n\u003Cmeta property=\"og:description\" content=\"Explore our Debt Relief Services in Canada. Our expert solutions help you reduce debt, manage finances, and achieve long-term stability. Learn more today!\" />\n\u003Cmeta property=\"og:url\" content=\"/debt-relief/\" />\n\u003Cmeta property=\"og:site_name\" content=\"Farber Debt Solutions\" />\n\u003Cmeta property=\"article:modified_time\" content=\"2025-03-24T16:31:31+00:00\" />\n\u003Cmeta name=\"twitter:card\" content=\"summary_large_image\" />\n\u003Cscript type=\"application/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https://schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"/debt-relief/\",\"url\":\"/debt-relief/\",\"name\":\"Debt Relief Services in Canada - Regain Financial Stability\",\"isPartOf\":{\"@id\":\"/#website\"},\"datePublished\":\"2024-05-28T18:16:14+00:00\",\"dateModified\":\"2025-03-24T16:31:31+00:00\",\"description\":\"Explore our Debt Relief Services in Canada. Our expert solutions help you reduce debt, manage finances, and achieve long-term stability. 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We’ve been offering debt solutions for over 45 years, so we understand the stress that debt can create.",{"iD":32,"id":32,"title":6,"filename":33,"filesize":34,"url":35,"link":36,"alt":37,"author":38,"description":37,"caption":37,"name":39,"status":40,"uploadedTo":41,"date":42,"modified":43,"menuOrder":44,"mimeType":45,"type":46,"subtype":47,"icon":48,"width":49,"height":50,"sizes":51,"relativeUrl":70},2797,"Your-Debt-Relief-Options.png",606658,"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options.png","/debt-relief/your-debt-relief-options/","","6","your-debt-relief-options","inherit",210,"2024-06-27 14:57:56","2024-06-27 15:17:45",0,"image/png","image","png","/wp-includes/images/media/default.png",1920,1140,{"thumbnail":52,"thumbnail-width":53,"thumbnail-height":53,"medium":54,"medium-width":55,"medium-height":56,"mediumLarge":57,"mediumLarge-width":58,"mediumLarge-height":59,"large":60,"large-width":61,"large-height":62,"1536x1536":63,"1536x1536-width":64,"1536x1536-height":65,"2048x2048":35,"2048x2048-width":49,"2048x2048-height":50,"gform-image-choice-sm":35,"gform-image-choice-sm-width":55,"gform-image-choice-sm-height":56,"gform-image-choice-md":35,"gform-image-choice-md-width":66,"gform-image-choice-md-height":67,"gform-image-choice-lg":35,"gform-image-choice-lg-width":68,"gform-image-choice-lg-height":69},"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options-150x150.png",150,"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options-300x178.png",300,178,"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options-768x456.png",768,456,"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options-1024x608.png",1024,608,"https://www.farber.ca/wp-content/uploads/2024/06/Your-Debt-Relief-Options-1536x912.png",1536,912,400,238,600,356,"/wp-content/uploads/2024/06/Your-Debt-Relief-Options.png","bg-gold-lightest",[],{"fieldGroupName":74,"heading":75,"anchors":76},"AnchorLinks","On this page",[77,80,83],{"title":78,"anchorId":79},"Explore your options","explore-your-options",{"title":81,"anchorId":82},"The results","results",{"title":84,"anchorId":85},"What you can save","what-you-save",{"fieldGroupName":87,"subheading":78,"heading":88,"text":89,"list":90,"button":101,"anchorId":79,"layout":104,"listStyle":105,"padding":106},"List","Why a consumer proposal is often the best choice","Did you know that a consumer proposal is chosen most often as an alternative to debt consolidation or bankruptcy? It can make up to 80% of your debt go away forever. Only Licensed Insolvency Trustees (LIT) like us can manage it for you.",[91,93,95,97,99],{"item":92},"Interest charges are frozen",{"item":94},"Stops collection calls and creditor action",{"item":96},"0% interest",{"item":98},"Monthly payments ",{"item":100},"Always based on what you can afford",{"title":102,"url":103,"target":37},"Why choose a consumer proposal?","https://www.farber.ca/consumer-proposal/","flex-row","checkmark",[107],"top-padding",{"fieldGroupName":109,"globalBlock":110,"anchorId":82,"flexBlocks":111},"GlobalBlock",51,[112],{"fieldGroupName":113,"introduction":114,"comparisonTable":116,"anchorId":37},"OptionsComparison",{"supertitle":81,"heading":115,"text":37},"Compare the costs and benefits",[117,139,158],{"name":118,"description":119,"features":120,"button":137},"Consumer Proposal","As LITs, we can cut your debt by up to 80% based on what you can afford, with no interest or penalties on what remains.      \r\n\r\n",[121,125,128,131,134],{"name":122,"value":123,"checkmark":124},"Who qualifies?","$6,000-$250,000 unsecured debt, unable to pay on time, with the ability to repay a portion",false,{"name":126,"value":127,"checkmark":124},"What happens to the debt?","Reduced by up to 80%, paid monthly",{"name":129,"value":130,"checkmark":124},"Is there any interest?","0%",{"name":132,"value":133,"checkmark":124},"Impact on secured assets?","None",{"name":135,"value":136,"checkmark":124},"Affect on credit score?","At first, your credit goes down, but you begin rebuilding it with this solution.",{"title":138,"url":103,"target":37},"Learn about consumer proposals",{"name":140,"description":141,"features":142,"button":155},"Bankruptcy","Before recommending bankruptcy, we explore all other options like a consumer proposal. Bankruptcy can eliminate debt, but it also has significant implications.",[143,145,148,150,153],{"name":122,"value":144,"checkmark":124},"Unable to pay debts on time",{"name":146,"value":147,"checkmark":124},"What happens to the debt? ","Most of the unsecured debts are eliminated",{"name":149,"value":130,"checkmark":124},"Is there any interest? ",{"name":151,"value":152,"checkmark":124},"Impact on assets?","Give up all 'non-exempt' assets",{"name":135,"value":154,"checkmark":124},"Significant negative impact for several years.",{"title":156,"url":157,"target":37},"Learn about bankruptcy","/bankruptcy",{"name":159,"description":160,"features":161,"button":172},"Debt Consolidation","We don’t provide loans. But debt consolidation under one loan is an option. Remember, these loans usually involve high interest rates. An interest-free alternative is called a consumer proposal.",[162,164,166,168,170],{"name":122,"value":163,"checkmark":124},"Eligible for a loan with multiple debts to simplify payments",{"name":146,"value":165,"checkmark":124},"Remains the same",{"name":129,"value":167,"checkmark":124},"Can be up to 60%",{"name":151,"value":169,"checkmark":124},"May be needed to secure loan",{"name":135,"value":171,"checkmark":124},"Varies",{"title":173,"url":174,"target":37},"Learn about debt consolidation","/debt-consolidation",{"fieldGroupName":176,"heading":177,"text":178,"anchorId":37},"OptionsCallOut","Want to talk through your options?","\u003Cp>\u003Ca href=\"https://www.farber.ca/book-a-consultation/\">Book a FREE consultation\u003C/a>\u003C/p>\n",{"fieldGroupName":180,"introduction":181,"anchorId":85,"backgroundColor":71,"padding":188},"DebtPaymentCalculator",{"heading":182,"headingLevel":183,"text":184,"button":185},"A consumer proposal is one of Canada’s best solutions for debt","h2","\u003Cp>A consumer proposal is a formal and legally-binding debt settlement agreement between you and the companies you owe money to (your creditors). It can reduce your debt by up to 80% and stops interest and legal action.\u003C/p>\n\u003Cp>\u003Cstrong>How much will you save?\u003C/strong>\u003C/p>\n",{"title":186,"url":187,"target":37},"Book a FREE consultation","https://www.farber.ca/book-a-consultation",[107,189],"bottom-padding",{"fieldGroupName":109,"globalBlock":191,"anchorId":37,"flexBlocks":192},324,[193],{"fieldGroupName":194,"image":195,"supertitleStyling":212,"supertitle":213,"badgeNumber":37,"heading":214,"text":215,"button":216,"anchorId":37,"backgroundColor":219,"imageContainer":220,"imageSize":221,"layout":222,"textAlignment":224,"bodyTextSize":226,"showArrowBelow":124,"spacing":227,"buttonStyling":228},"ImageTextBanner",{"iD":196,"id":196,"title":197,"filename":198,"filesize":199,"url":200,"link":201,"alt":37,"author":38,"description":37,"caption":37,"name":202,"status":40,"uploadedTo":191,"date":203,"modified":204,"menuOrder":44,"mimeType":45,"type":46,"subtype":47,"icon":48,"width":49,"height":50,"sizes":205,"relativeUrl":211},2794,"Why Farber CTA","Why-Farber-CTA.png",508462,"https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA.png","/?attachment_id=2794","why-farber-cta","2024-06-27 14:57:33","2024-06-27 15:18:14",{"thumbnail":206,"thumbnail-width":53,"thumbnail-height":53,"medium":207,"medium-width":55,"medium-height":56,"mediumLarge":208,"mediumLarge-width":58,"mediumLarge-height":59,"large":209,"large-width":61,"large-height":62,"1536x1536":210,"1536x1536-width":64,"1536x1536-height":65,"2048x2048":200,"2048x2048-width":49,"2048x2048-height":50,"gform-image-choice-sm":200,"gform-image-choice-sm-width":55,"gform-image-choice-sm-height":56,"gform-image-choice-md":200,"gform-image-choice-md-width":66,"gform-image-choice-md-height":67,"gform-image-choice-lg":200,"gform-image-choice-lg-width":68,"gform-image-choice-lg-height":69},"https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA-150x150.png","https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA-300x178.png","https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA-768x456.png","https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA-1024x608.png","https://www.farber.ca/wp-content/uploads/2024/06/Why-Farber-CTA-1536x912.png","/wp-content/uploads/2024/06/Why-Farber-CTA.png","regular","Why Farber?","We believe that everyone can prosper","\u003Cp>The debt you’re facing today is not forever. With more than 45 years of experience in Canadian debt relief, we’ve helped over 200,000 people just like you build a better relationship with money and put their debt behind them.\u003C/p>\n",{"title":217,"url":218,"target":37},"What makes us different","https://www.farber.ca/what-makes-us-different/","bg-teal-dark","full-bleed","5/12",{"desktop":223,"mobile":223},"imageContent",{"desktop":225,"mobile":225},"center","large",[],"light",{"fieldGroupName":109,"globalBlock":230,"anchorId":37,"flexBlocks":231},348,[232],{"fieldGroupName":233,"introduction":234,"steps":239,"showArrows":20,"anchorId":37},"Steps",{"supertitle":235,"heading":236,"button":237},"Take the first step","Book a free, confidential, no-obligation consultation – we’ll do the rest",{"title":186,"url":238,"target":37},"https://www.farber.ca/book-a-consultation/",[240,256,268,280],{"icon":241,"text":255},{"iD":242,"id":242,"title":243,"filename":244,"filesize":245,"url":246,"link":247,"alt":37,"author":38,"description":37,"caption":37,"name":243,"status":40,"uploadedTo":230,"date":248,"modified":249,"menuOrder":44,"mimeType":250,"type":46,"subtype":251,"icon":48,"width":252,"height":252,"sizes":253,"relativeUrl":254},2721,"icons8-connected-people","icons8-connected-people.svg",2023,"https://www.farber.ca/wp-content/uploads/2024/06/icons8-connected-people.svg","/?attachment_id=2721","2024-06-24 14:59:50","2024-06-24 16:54:55","image/svg+xml","svg+xml",96,{"thumbnail":246,"thumbnail-width":53,"thumbnail-height":53,"medium":246,"medium-width":55,"medium-height":55,"mediumLarge":246,"mediumLarge-width":58,"mediumLarge-height":58,"large":246,"large-width":61,"large-height":61,"1536x1536":246,"1536x1536-width":252,"1536x1536-height":252,"2048x2048":246,"2048x2048-width":252,"2048x2048-height":252,"gform-image-choice-sm":246,"gform-image-choice-sm-width":252,"gform-image-choice-sm-height":252,"gform-image-choice-md":246,"gform-image-choice-md-width":252,"gform-image-choice-md-height":252,"gform-image-choice-lg":246,"gform-image-choice-lg-width":252,"gform-image-choice-lg-height":252},"/wp-content/uploads/2024/06/icons8-connected-people.svg","Share your story with one of our supportive team members",{"icon":257,"text":267},{"iD":258,"id":258,"title":259,"filename":260,"filesize":261,"url":262,"link":263,"alt":37,"author":38,"description":37,"caption":37,"name":259,"status":40,"uploadedTo":230,"date":264,"modified":249,"menuOrder":44,"mimeType":250,"type":46,"subtype":251,"icon":48,"width":252,"height":252,"sizes":265,"relativeUrl":266},2719,"icons8-compare","icons8-compare.svg",2280,"https://www.farber.ca/wp-content/uploads/2024/06/icons8-compare.svg","/?attachment_id=2719","2024-06-24 14:59:48",{"thumbnail":262,"thumbnail-width":53,"thumbnail-height":53,"medium":262,"medium-width":55,"medium-height":55,"mediumLarge":262,"mediumLarge-width":58,"mediumLarge-height":58,"large":262,"large-width":61,"large-height":61,"1536x1536":262,"1536x1536-width":252,"1536x1536-height":252,"2048x2048":262,"2048x2048-width":252,"2048x2048-height":252,"gform-image-choice-sm":262,"gform-image-choice-sm-width":252,"gform-image-choice-sm-height":252,"gform-image-choice-md":262,"gform-image-choice-md-width":252,"gform-image-choice-md-height":252,"gform-image-choice-lg":262,"gform-image-choice-lg-width":252,"gform-image-choice-lg-height":252},"/wp-content/uploads/2024/06/icons8-compare.svg","Review your debt-relief options together",{"icon":269,"text":279},{"iD":270,"id":270,"title":271,"filename":272,"filesize":273,"url":274,"link":275,"alt":37,"author":38,"description":37,"caption":37,"name":271,"status":40,"uploadedTo":230,"date":276,"modified":249,"menuOrder":44,"mimeType":250,"type":46,"subtype":251,"icon":48,"width":252,"height":252,"sizes":277,"relativeUrl":278},2733,"icons8-timeline","icons8-timeline.svg",2591,"https://www.farber.ca/wp-content/uploads/2024/06/icons8-timeline.svg","/?attachment_id=2733","2024-06-24 15:00:03",{"thumbnail":274,"thumbnail-width":53,"thumbnail-height":53,"medium":274,"medium-width":55,"medium-height":55,"mediumLarge":274,"mediumLarge-width":58,"mediumLarge-height":58,"large":274,"large-width":61,"large-height":61,"1536x1536":274,"1536x1536-width":252,"1536x1536-height":252,"2048x2048":274,"2048x2048-width":252,"2048x2048-height":252,"gform-image-choice-sm":274,"gform-image-choice-sm-width":252,"gform-image-choice-sm-height":252,"gform-image-choice-md":274,"gform-image-choice-md-width":252,"gform-image-choice-md-height":252,"gform-image-choice-lg":274,"gform-image-choice-lg-width":252,"gform-image-choice-lg-height":252},"/wp-content/uploads/2024/06/icons8-timeline.svg","Make a plan to help regain control of your money",{"icon":281,"text":291},{"iD":282,"id":282,"title":283,"filename":284,"filesize":285,"url":286,"link":287,"alt":37,"author":38,"description":37,"caption":37,"name":283,"status":40,"uploadedTo":230,"date":288,"modified":288,"menuOrder":44,"mimeType":250,"type":46,"subtype":251,"icon":48,"width":252,"height":252,"sizes":289,"relativeUrl":290},3328,"icons8-low-price","icons8-low-price.svg",1888,"https://www.farber.ca/wp-content/uploads/2024/06/icons8-low-price.svg","/?attachment_id=3328","2024-07-22 09:49:42",{"thumbnail":286,"thumbnail-width":53,"thumbnail-height":53,"medium":286,"medium-width":55,"medium-height":55,"mediumLarge":286,"mediumLarge-width":58,"mediumLarge-height":58,"large":286,"large-width":61,"large-height":61,"1536x1536":286,"1536x1536-width":252,"1536x1536-height":252,"2048x2048":286,"2048x2048-width":252,"2048x2048-height":252,"gform-image-choice-sm":286,"gform-image-choice-sm-width":252,"gform-image-choice-sm-height":252,"gform-image-choice-md":286,"gform-image-choice-md-width":252,"gform-image-choice-md-height":252,"gform-image-choice-lg":286,"gform-image-choice-lg-width":252,"gform-image-choice-lg-height":252},"/wp-content/uploads/2024/06/icons8-low-price.svg","Start lowering your debt and easing your stress",{"fieldGroupName":293,"anchorId":37},"TrustpilotReviewSlider",{"fieldGroupName":295,"heading":296,"cards":297,"anchorId":37},"ArticleCards","The truth about debt",[298,312,322,332,342,352],{"ID":299,"post_author":38,"post_date":300,"post_date_gmt":301,"post_content":302,"post_title":303,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":305,"to_ping":37,"pinged":37,"post_modified":306,"post_modified_gmt":307,"post_content_filtered":37,"post_parent":44,"guid":308,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2450,"2021-04-01 12:51:00","2021-04-01 16:51:00","\u003Ch2 class=\"\">What Is A Consumer Proposal?\u003C/h2>\r\n\u003Cp>A Consumer Proposal is a formal agreement between you and your creditors that is submitted on your behalf by a Licensed Insolvency Trustee (LIT). It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing. This can result in as much as a 80% debt saving. Most important, it allows you to retain assets, such as your car and your home. A Consumer Proposal allows you to get out of debt faster and easier, as compared to other debt relief solutions, and can be paid down quicker if you can do so.\u003C/p>\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-consumer-proposal-loans\">Consumer Proposal & Loans\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>A very common question is whether a Consumer Proposal or Bankruptcy can help with Provincial or Federal student loan debts. This depends on how old the student loan debt is. According to the Bankruptcy and Insolvency Act, you can eliminate student loan debt through bankruptcy or Consumer Proposal if your loans are more than seven years old from the date you finished at the post-secondary institution you attended.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Therefore, if you’ve been out of school for more than seven years and are struggling to pay down your debt, you could find relief by speaking with a Licensed Insolvency Trustee and reviewing your options.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>If it has not been seven years since you graduated, your student loan cannot be included in a Consumer Proposal or Bankruptcy. If you are in this situation, you will need to consider other options to help you handle your student loan debt pressures. There are some hardship provisions in the Act which could allow you to receive repayment assistance. This assistance could see your student loan payments reduced or you may not have to make any payments, depending on your financial situation.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Also, keep in mind that while a Consumer Proposal or Bankruptcy will not specifically help with your student loan debt if this debt is less than seven years old, these processes can help reduce or eliminate all of your other sizable debts (like credit cards with high interest rates), freeing up money in your monthly budget to cover the student loan repayment without further financial stress.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The good news? A Consumer Proposal does not ruin your credit rating forever. In fact, it puts you in a position where repairing your credit is very achievable.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>After you have successfully completed your Consumer Proposal, there will be a note on your credit report at the credit bureau (TransUnion or Equifax) for three years. That three-year period will not prevent you from improving your credit score over time. One of the most important factors that is used to calculate a credit score is your payment history. Showing the credit bureaus that you can borrow money and successfully pay it back will improve your credit.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>It makes sense to start small when it comes to credit rebuilding. After your Consumer Proposal has been completed, take out a small loan or apply for a credit card. You may wish to choose a secured credit card (where you put down a small deposit and the card issuer grants you a slightly larger credit limit) since this will likely be easier for you to obtain. Then it’s up to you to make responsible and regular payments on this card. Try to avoid a Prepaid Card as those cards do not report to the credit bureaus like a Secured Card would, and won’t help you in your rebuilding efforts.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>It’s very important to be aware that rebuilding credit after a Consumer Proposal takes time. It is not an instantaneous process. Avoid companies that promise to be able to “fix” your credit rating quickly or automatically. No one can change the information that is listed in your credit report. The only way to repair bad credit is by having responsible and consistent credit behavior over time.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>After a Consumer Proposal, you will need to show that you can borrow money responsibly. Showing this will allow you to rebuild your credit score.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>You may have seen some of the Payday Loan companies scattered around your neighborhood. There are usually a few in every community and they are designed to make it easier for cash-strapped employees to borrow against their future pay cheques (another name for a Payday Loan is a cash advance). These are small, short-term unsecured loans that are tied to your pay cheque. The Pay Day Loan store advances you some funds against your next pay cheque. Once you get paid you go in and pay back the loan, as well as a chunk of interest.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The big problem with most Pay Day loans is they usually turn out to be anything but low-interest OR short-term. They are the loan of last resort (where we go when all other loan sources, such as banks, friends and family, have turned us down).\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Once caught in the web of Pay Day loan repayments, a borrower will often find themselves heading to a second or a third Pay Day loan store to borrow funds to cover the growing debt on the first Pay Day loan - with often disastrous financial results.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Payday Loans are the worst form of revolving credit and are hopelessly unaffordable for most people. The best way to deal with a Pay Day loan is not to use one at all.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Luckily, there is hope thanks to the Bankruptcy and Insolvency Act. If you’re already caught up in a frustrating Pay Day loan cycle, a Licensed Insolvency Trustee can help you put a stop to the nightmare once and for all.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Getting a car loan in Canada while currently in (or coming out of) a Consumer Proposal is possible if you apply through a private lender, show your proof of Consumer Proposal documents and can ensure that your debt-to-income ratio is low (the amount of debt you hold versus your net monthly income).\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>There are lots of terrific car dealers across the country whose business models are designed around assisting people who are in a Consumer Proposal. And since financing or leasing an automobile is a secured debt, it’s a safe debt to take on (both for the lender, who could repossess the vehicle if you fail to make the required monthly payments on time, and for yourself since you will be able to start rebuilding your credit once the lender reports your on-time monthly payments to the credit bureaus), while in a Proposal or even in a Bankruptcy.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-consumer-proposal-mortgage\">Consumer Proposal & Mortgage\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>One of the most frequent questions a Trustee hears is “will I be able to buy a home one day?” or the alternative “will my bank renew my mortgage if I am in a Consumer Proposal?”   Both excellent questions that deserve some explanation.   Luckily, the news is positive on both.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>For you to get the best deal on a mortgage either during a Consumer Proposal or afterwards you need to ensure a few things are done properly, including: \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>Ensure you pay all your monthly bills (including utility bills) on time – mortgage lenders have been known to reject a new mortgage due to defaults on utility bills. So, it’s not just a big monthly expense like the mortgage payment and the car financing payment you need to worry about, it’s also those cable, phone, gas and hydro bills.  Always keep them current.\u003C/li>\r\n\u003Cli>Pay down your Consumer Proposal quickly – it will be much easier for you to qualify for a brand-new mortgage and get that home you are eager to buy if you don’t still have Consumer Proposal payments on your monthly expense list. Pay it down faster than required (you can pay a proposal off early by speaking with your Administrator) and then go apply for that mortgage.  Plus, without the Consumer Proposal payments you’ll probably qualify for a better mortgage rate, thereby saving yourself a lot of cash over the years in unnecessary interest payments.\u003C/li>\r\n\u003Cli>Save towards a larger down payment – a lot of folks put down 5% and then qualify for a mortgage. By offering a much larger down payment (some lenders will be looking for at least 15% down, more likely 20% down) you can negotiate a better interest rate on the mortgage you are getting.  And that means less money spent on interest and a faster pay-off time for the mortgage over the years.  \u003C/li>\r\n\u003Cli>Don’t just focus on the banks – consider alternative lenders as well -- many alternative lenders will consider approving your application for a mortgage soon after your discharge, if your past debts are fully cleared, and you are starting to re-establish credit. If you’re looking to re-finance your existing mortgage, it’s even possible that you could use part of the funds to pay off the proposal\u003C/li>\r\n\u003Cli>Try to make your credit rating as perfect as you possibly can. Your goal is to get your credit rating above 700. But the rating isn’t the only thing that’s important. Mortgage lenders want to see at least two significant “clean” credit facilities on your credit bureau.   This includes major credit cards such as a Visa or MasterCard, as well as a car lease or loan, or sometimes even an RRSP loan (if it reports to the credit bureau).  With your current “clean” credit cards, your balance should never exceed more than 30% of the limit. \u003C/li>\r\n\u003Cli>Obtain some solid advice from a mortgage broker. Not only does a mortgage broker have a much better overview of all the options available to you, you will also get someone who will help you with looking at your credit and making specific recommendations for improving it, give you feedback on any other aspects of your financial picture that you need to give attention to, and provide you with a game plan for getting a great mortgage, both short- and long-term.\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The good news: Your home is safe. These assets remain your property. The lender usually takes some form of security such as a mortgage, to secure the amount you owe in the event you do not repay the loan. So, your home should be safe if your mortgage payments are up to date and you are current on your property taxes.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>In most cases, you do not lose your assets when you file a Consumer Proposal if your offer is enough to satisfy your creditors. This means that, if you continue to make your payments, you will most likely be able to keep your home. Speaking with a Licensed Insolvency Trustee can clarify this for your situation. However, a Consumer Proposal does not usually involve the loss of assets.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>A mortgage lender cannot change the terms of your mortgage because you have filed a Consumer Proposal. The only way that a lender can foreclose on your home is if you have missed payments. As mentioned, if you continue to make your payments on time, you should have no problems.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>In a Consumer Proposal situation, you typically make a payment to your trustee each month. The trustee then distributes this payment to your creditors. Having a standard monthly payment makes it easier to budget so you should be able to fit your mortgage payments and your proposal payments into your household budget.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>It is important to note that a Consumer Proposal is filed to all unsecured creditors. Unsecured debts include credit card debt, personal loans, unsecured lines of credit, bank overdraft fees and other such debts. Secured loans such as automobile loans and mortgages are not included in a Consumer Proposal. If you are having trouble paying these debts, you should speak to these lenders directly.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>If you need to renew your mortgage after filing a Consumer Proposal, you should generally not have an issue with doing so, dependent on whether you have made all your mortgage payments in the past and you can show the mortgage lender that you will be able to continue to make your payments in the future. However, a Consumer Proposal can make it more difficult to switch mortgage lenders. It can also make it more difficult to get a favorable interest rate when you do renew.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>It’s important to remember that a Consumer Proposal remains on your credit record for three years after it is completed – some lenders will see this as a negative and either reject your renewal or ask for a higher interest rate during the time that Consumer Proposal remains on your credit report. It’s also important to remember that, since you were more than likely in a difficult financial situation before filing your Consumer Proposal, getting a favorable interest rate would likely be difficult anyway. You may have to endure the short-term pain of a 1, 2 or 5-year higher interest renewal and then negotiate a much lower renewal interest rate the next time you apply to renew the mortgage. Short term pain = long term gain.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>It can be more complicated to get a brand-new mortgage after filing a Consumer Proposal. This is because a Consumer Proposal negatively impacts your credit rating. However, depending on your circumstances, you may still be able to get a mortgage.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>To increase the likelihood of getting a mortgage after a Consumer Proposal, here are a few guidelines to follow:\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>Take steps to rebuild your credit. Rebuilding your credit rating after a Consumer Proposal is not only possible but pretty much mandatory if you hope to have usable credit again. The first step? Consider applying for a secured credit card and then using the card for small purchases. Paying the card off in full and on time each month can then help restore your credit (You will be required to take two financial counselling sessions as a part of the Consumer Proposal process. These sessions will provide you with guidance on how to restore your credit).\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>Look for a shorter-term mortgage. Since the interest rate on the mortgage will likely be higher than you’d like, consider getting a one- or two-year mortgage term and then re-negotiating the interest charged when you renew the mortgage with your lender (and your credit is better than it was the first time around). This strategy will help you avoid paying higher rates for longer than necessary.\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>Offer a much larger down payment. Saving money so you can slap down a larger down payment can help you get a better mortgage rate. Most mortgage lenders like to see a 20% down payment (or more).\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>Be realistic about what you can afford – try and choose a property that is affordable, both in terms of physical upkeep and monthly payments (including mortgage, property taxes, utilities or maintenance fees, etc.). That may mean buying a small condominium unit to start, then moving up to a small home later, once your credit and ability to earn income improve.\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>By following these guidelines, you increase your chances of getting a mortgage, even if you have filed a Consumer Proposal.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-consumer-proposal-your-credit-rating\">Consumer Proposal & Your Credit Rating\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Your credit rating isn’t damaged forever once you file a Consumer Proposal. This is a common misconception that is often reinforced by creditors and collection agencies, who are trying to scare you into paying them before you file the proposal.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>There is most-certainly an impact on your credit rating, however. But if you are in a position where filing a Consumer Proposal makes financial sense for you, your credit has likely already been damaged by prior missed payments or late payments (though many people who file Consumer Proposal have been successfully making small minimum payments for years before they file, and their credit scores appear quite robust). Ultimately, filing a Consumer Proposal and dealing with your rising debt load will help you in the long run. But it won’t happen overnight.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>One of the best things about a Consumer Proposal is that, once filed, it puts you onto the right path and in position to start rebuilding your financial life. Rather than continuing the same minimum-payment dance that you’ve already been doing month after month, you will put that nasty debt behind you once and for all and be financially free to acquire new credit in a responsible manner.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>One of the best ways to ensure you get on-track is to attend the two mandatory financial counselling sessions that are part of your Consumer Proposal process. These sessions teach you about money management as well as monthly budgeting and provide you with information that will help you manage your financial life going forward – one of the major components of the two sessions is a discussion of how you can rebuild your credit rating following the successful completion of the proposal.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>When it comes to rebuilding your credit rating, it’s important to consider what actions are considered important by the credit bureaus (normally TransUnion and Equifax). One of the most important factors is your ability to repay your debts on time. This means that for you to dramatically improve your credit you will need to show your creditors (and ultimately the credit bureaus) that you are able to responsibly borrow money and pay it back as it becomes due.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>However, you may find it difficult to acquire new credit if you have a low or poor credit rating. One solution to this problem is to apply for a secured credit card. This is a card that allows you to put down a small one-time payment that is then secured against the credit issued to you for the card by the lender. For example, if you put down $79, your credit card could have up to a $500 limit. You can then use this card for purchases in-person and online, such as groceries, gas or a hotel room or plane ticket. Paying the bill on this card as it becomes due will show credit bureaus and lenders that you are able to responsibly use credit, and this will help improve your credit report. They may even boost your credit level over time, as well as convert the secured card into a more traditional non-secured card once you’ve proven yourself a responsible borrower.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The best thing about a Consumer Proposal (aside from the financial freedom it grants you) is that it does not mean your credit rating is ruined forever. By taking the right steps, you can improve your credit and propel yourself back into a strong financial position.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>As you can may already be aware, when you file a Consumer Proposal, the two credit bureaus list your existing debts as “R9.” You will likely remain at this rating until you have completed the proposal. When you complete your Consumer Proposal and receive your Certificate of Full Performance from the Trustee, a note is placed on your credit report. This note remains there for three years. This rating indicates someone has made a special arrangement to pay their debts, such as a consolidation plan, debt management plan or Consumer Proposal and has successfully completed the process.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>After the three-year waiting period, any mention of your past debts disappears completely from your credit report, as does any related information about the Consumer Proposal you had filed and completed. To any new creditor reviewing your report it will appear as if you never filed a Consumer Proposal at all. Best of all, any new debt acquired since the date the proposal was first filed (such as a secured credit card or a car loan) is the only debt displayed on your credit report at that point.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-consumer-proposal-payments\">Consumer Proposal Payments\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Consumer proposals come in all shapes and sizes, including the not uncommon “lump sum payment” variety. Many Consumer Proposal in Ontario are based on a simple monthly payment format but some consumer debtors can offer a lump-sum proposal to their creditors, usually with the help of a family member or friend, by remortgaging an existing home, selling off a specific asset or cashing out an investment (such as a TFSA or a stock portfolio). \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The advantages of a lump-sum proposal over a traditional Consumer Proposal include:\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:list -->\r\n\u003Cul>\r\n\u003Cli>A lump sum proposal is only finalized once a simple majority of your creditors (by dollar value of debts owed) vote in agreement to accept the proposal. Once that acceptance is in place, the lump sum is paid by the consumer debtor and the proposal is successfully completed shortly afterwards.\u003C/li>\r\n\u003Cli>Creditors will accept a lower repayment at the start of the payments, rather than having to wait up to a maximum of five years for monthly payments to accumulate and be distributed to them.\u003C/li>\r\n\u003C/ul>\r\n\u003C!-- /wp:list -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>If you feel you have access to a large lump sum, either from a family member, by refinancing your home or by cashing out an investment account, then consider a lump-sum proposal over a traditional Consumer Proposal to speed up the entire process and get back on track financially faster.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>For you to successfully complete your Consumer Proposal, your main duty and responsibility is to ensure that you make your proposal payments each month as agreed. These payments will be made directly to your trustee through a pre-authorized withdrawal from your bank account. The Trustee will then distribute the funds to your creditors once the accrual has reached a specific level. It is very important that you make these payments. If you miss three payments over the life of your proposal, the proposal can be annulled - this means your creditors will be free to take legal action against you in order to collect the full amount of debt owing to them, plus accumulated interest from the date the proposal was first filed.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Missing a payment here and there is not a huge problem if you replace the payment as soon as possible by either dropping off a replacement cheque, a cash payment or a money order to the Trustee’s office as soon as you possibly can. Then it will be as if you never missed a payment.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The Consumer Proposals we see annulled are usually the result of job loss or a substantial drop in income (for example, a change of employment to a lower-paying job for a different employer or the need to go on long-term disability due to an injury at work). These types of scenarios can make it extremely difficult for a consumer debtor to keep the monthly payments current. And once three payments are missed, annulment is the next step.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Remember: If your Proposal does get annulled you can always opt to file for personal bankruptcy so there is another option available. Your Trustee can move quickly to prepare the bankruptcy paperwork, and have you come in to sign everything. Once filed with the government your court protection from your creditors would be back in place.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>One of the major benefits of filing a Consumer Proposal, rather than a Bankruptcy, is the freedom you can achieve if you can pay if off earlier (a Proposal can be paid down at any time after acceptance by the Creditors and the Court). And unlike some of those expensive loans, a Consumer Proposal has another benefit – there are no penalty charges or interest. In fact, we encourage you to pay down a Consumer Proposal as quickly as possible, so you can receive your Certificate of Completion earlier and use it to improve your credit rating.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Unfortunately, Consumer Proposal payments to the Trustee are not tax-deductible, even though the process is overseen by a government agency, the Office of the Superintendent of Bankruptcy. It’s always important to remember that when you make those proposal payments you are paying off a portion of the unsecured consumer debt you owe to your creditors. This is money you have already spent on goods and services. The major benefit of filing a Consumer Proposal is to obtain relief from the stress of having a large debt load and an end to any further interest being charged on your debts.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-frequently-asked-questions-about-consumer-proposal\">Frequently Asked Questions About Consumer Proposal\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Most Consumer Proposals last from three to a maximum of five years (with 5 years being the norm). You generally make one monthly payment to your Licensed Insolvency Trustee, who disburses the funds to your creditors on your behalf. You have more flexibility in managing your monthly expenses, because the total amount you have agreed to can be paid out over a full five-year period. There are no additional payments other than those being offered under your Proposal. Once accepted, the Consumer Proposal is legally binding on all your creditors. In other types of debt settlements, you would normally need to negotiate a settlement with each creditor individually, and some could choose to opt out. In a Consumer Proposal, once a simple majority of positive votes by dollar value is achieved then all the other creditors are part of the settlement – even if they voted against the proposal during the 45-day voting period (which begins right after protection goes into effect). You are formally discharged from the balance of your debts owing once you make your final payment to the Licensed Insolvency Trustee. The Trustee then issues you a Certificate of Completion and notifies the credit bureaus that you have successfully completed your proposal duties.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>To be eligible to file a Consumer Proposal you must be insolvent (i.e. unable to pay your debts as they become due), have a total debt load of less than $250,000 (excluding the mortgage on your principal residence), have a stable source of income (or a friend or family member who is prepared to underwrite the proposal's monthly payments on your behalf) and have no prior Proposal proceedings still active. If you are currently having difficulty meeting your debt repayments (for example, you miss monthly payments or are paying just the minimum payments on your credit cards), a Consumer Proposal may be a far better solution than some other options, such as a \u003Ca href=\"/blog/consolidating-unsecured-debts-mortgage-secured-line/\">debt consolidation\u003C/a> or credit counselling. You will normally end up paying your creditors less in a Consumer Proposal than under those other two options, and interest will stop the moment the proposal is filed with the Official Receiver (the Federal government).\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>If you choose to file a Consumer Proposal, the Licensed Insolvency Trustee (LIT) will determine what a fair offer to your creditors will be, based upon your financial situation. Often the amount to be offered in a settlement will be approximately 30% of what you currently owe all your creditors. You will then complete all required legal paper work; the Consumer Proposal will be filed with the Federal Regulator and your offer will be sent out to all your unsecured creditors by the Trustee’s staff.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>More than $250,000 of debt? Consider a Division 1 Proposal\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Like a Consumer Proposal, this is a formal procedure overseen by the Licensed Insolvency Trustee (LIT) under the Bankruptcy and Insolvency Act (the BIA). This type of Proposal is available to businesses and individuals — there is no limit with respect to how much money is owed (other than the requirement that the amount owing must be over $250,000). As with a Consumer Proposal, in a Division I proposal, you work with a Licensed Insolvency Trustee to construct a fair offer to pay your creditors a percentage of what you owe them, payable over a specific timeframe. And just like a Consumer Proposal, all payments are made through the Insolvency Trustee, and the Trustee holds those funds in trust as they accrue and then uses them to pay each of your creditors.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Because a Division One or Consumer Proposal in Canada can only be submitted to your creditors by a Licensed Insolvency Trustee (also known as a LIT), a debt consolidation firm or credit counselor cannot file a Consumer Proposal for you nor can you file a Consumer Proposal on your own. Because the Bankruptcy and Insolvency Act states that only a Licensed Insolvency Trustee can file the proposal, the integrity of the system stands firm. Trustees are licensed through the Federal Government and understand both Provincial and Federal laws. They are required to perform a face-to-face Assessment with you and ensure all unsecured debts, all assets and all other pertinent information (including a detailed household income and expense report) is prepared and signed. This ensures the proposal is being filed properly so it is legally-binding on you and all your unsecured creditors once accepted by a simple majority of your creditors.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>In order to be eligible to file a Consumer Proposal you must an insolvent person, be unable to pay your debts as they become due and have total debts of less than $250,000 (excluding the mortgage on your principal residence). You must also have a stable source of income, to ensure that you will be able to make the monthly proposal payments, and have no prior proposal proceedings still open.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>You can withdraw a Consumer Proposal within the first 60 days of filing the proposal. However, the danger in doing so is that all the unsecured creditors would then be able to descend on you again, demanding full repayment with interest charges added for the period since the Consumer Proposal was first filed. If you are seriously considering withdrawing your proposal, we strongly recommend you first speak to the Trustee that is handling your Consumer Proposal about the alternatives available to you (for example, the filing of a personal bankruptcy as an alternative way of dealing with your debt pressures).\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Generally, most employers will not ask if you have filed either a bankruptcy or proposal. However, some industries, specifically the financial or insurance sectors, may require that you disclose this information. By choosing to file a Consumer Proposal, rather than a personal bankruptcy, you can then retain your professional credentials or license (as in the case of an insurance broker, a director of a corporation, a licensed real estate broker, lawyer etc.)\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Consumer Proposals must be voted on by all unsecured creditors. Once registered with the Official Receiver, a Consumer Proposal is sent out to all your creditors and they have 45 days from the date of filing to vote. Most Consumer Proposals are accepted “as is” but a small percentage require an additional stipulation included (at the request of the creditor, for example CRA) or a slightly-larger settlement amount agreed to by the debtor. The rule of thumb is: The Consumer Proposal must be a better offer, dollar wise, than what the creditor would receive in a Bankruptcy. Once accepted by a simple majority of your unsecured creditors, all of them are bound by the terms of the Proposal agreement. This is the major difference (and sizeable advantage) of a Consumer Proposal as compared to an informal debt settlement, whereas a debt settlement is negotiated with each creditor individually (often a very tenuous process). In Ontario, Consumer Proposals are usually accepted if they are fair and reasonable. This is because creditors know that they will get significantly less money from you in a Bankruptcy scenario.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Are you borrowing from one credit card to pay the minimum monthly amount on another card? Constantly relying on your overdraft to cover monthly bills and debt repayment? Frustrated by the amount of interest being racked up on your line of credit or department store cards each month? Then it’s probably time for you to to speak with a Licensed Insolvency Trustee. We completely understand how difficult and stressful it can be to speak to a licensed professional about your debt woes. The good news? There are countless debt relief options for you to choose from, each tailored towards a different type of debt or situation. For many Canadians a Consumer Proposal is the ideal solution to their debt worries.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Your creditors will have 45 days to either accept or reject your proposal. Any creditor with a proven claim may accept or object to your proposal. This can be done either prior to or at the meeting of creditors, (if one is held). It can also be done within 45 days following the filing of your Consumer Proposal. A meeting of creditors will be called if one is requested by one or more creditors having at least 25% of the value of the proven claims filed with the Trustee. This request must be made within 45 days of the filing of your proposal. The OSB can also direct your Trustee to call a meeting of creditors at any time within this 45-day period. A meeting of creditors will be held within 21 days after being called by the Trustee. It’s rare for creditors to outright reject a reasonable Consumer Proposal. Some may wish an additional stipulation be added to the Proposal’s wording (as in the case of CRA) or request the debtor increase his settlement offer amount slightly to satisfy a specific creditor. There is almost always a way to obtain acceptance of the Consumer Proposal. And every Consumer Proposal drafted is unique in that it contains a specific list of assets and debts that no other Proposal will contain in just that same way.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Each month you will pay the Trustee an agreed-upon fee that is “locked in” once the Proposal is accepted by your creditors. No surprises. Missing a payment is discouraged but Trustees are aware that the intrusion of the real world tends to result in a missed payment now and again. If you replace the payment within a short period of time, your Proposal will continue unabated. The important thing to remember is the “three strikes rule”, which is known officially as a “deemed annulment\". This occurs when you miss a total of three payments over the course of the Proposal and don’t make up the payments in a timely manner.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Cancelling your Consumer Proposal is known as an annulment. The consequences of an annulled Consumer Proposal are severe. First, unlike other debt relief options that get cancelled, you will lose all the money that has been given to your creditors. All funds that have been paid will not be returned to you. After receiving notice of the annulled proposal, some, or all, of your creditors will eventually start contacting you again for repayment. If able to do so, you could try making your own informal offers with your creditors to settle each of your debts on your own (a difficult process at the best of times). Opportunities such as selling your assets to raise funds for debt repayment could be another way to eliminate or reduce a debt amount. Many consumer debtors who withdraw from a Proposal ultimately end up filing for Personal Bankruptcy protection from those same creditors to ease their debt pressures.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The good news is that your assets can be protected under a Consumer Proposal. Unlike a bankruptcy, where you could lose some of your assets depending on their value and the province that you live in, a Consumer Proposal allows you to keep what you own if the creditors agree to the amount you have committed to repay. This is particularly important if you own a vehicle, have RESPs for your children (except in Alberta) or have net equity in your home after selling costs and mortgage repayment. Money invested in an RRSP is generally protected from creditors with some exceptions (any funds contributed within the past 12-month period must be calculated into the value of your realizable assets in some provinces). Provincial government exemptions (which differ from province to province) allow you to protect various assets from seizure by your creditors.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>A Consumer Proposal also puts a stop to any wage garnishment and unfreezes your frozen bank accounts. The process also ends any civil legal action against you to collect on the debt. However, there are exceptions to this, specifically wage garnishments and legal action that are a result of unpaid child support or spousal support. These debts cannot be eliminated by a Consumer Proposal and filing a proposal does not stop legal action or wage garnishment in these cases. Aside from those specific debts, when you file a Consumer Proposal all wage garnishments and collection calls cease. This is called a Stay of Proceedings -- it means you are protected from any creditors starting or continuing any legal proceedings to collect any debt owed to them.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The Canada Revenue Agency (CRA) can order your bank account frozen if you owe the agency money. If you owe your bank money (through a bank loan or a credit card supplied by the bank, for example) the bank can also freeze your bank account or seize funds from the account without warning if you are behind on your minimum monthly payments on your lines of credit, overdraft, bank loan or credit cards. When your bank account is frozen, you will be unable to withdraw any funds from the account. Instead, the CRA or your bank seizes the funds directly from your account in order to repay a portion, or all, of the debt that is owed. A Consumer Proposal unfreezes frozen bank accounts but cannot get back the funds already seized.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The only way to rebuild bad credit is to replace it with good credit over time. This can often be done by obtaining a secured credit card and using it regularly as well as paying it down each month. A secured credit card is a special type of credit card where you place a small deposit up front and this amount is used to secure the credit limit on the card. For example, some secured credit cards require an initial security deposit of $75 and then an annual fee to use the card. In exchange you are given anywhere from $200 to $2,000 of credit on the card to use as a way of helping you re-establish your credit worthiness. Using this card and repaying the outstanding balance in full each month helps rebuild your credit rating and your Beacon Score and demonstrates to other prospective creditors that you can use credit in a reliable, responsible manner and are a good credit risk.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Many people wonder about the impact of a Consumer Proposal on RRSP investments. A lot worry that they’ll lose the money they’ve worked so hard to contribute to their RRSPs when they file a Consumer Proposal. This is a valid concern. After all, your RRSP contributions are funds that you may have saved for many years to sustain you in your future retirement.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>This money is vital to your future because you’ll need to live on it one day. When you file a Consumer Proposal, you generally do not have to give up any assets (or your monthly payment to creditors compensates them for the value of those assets, where applicable). This includes funds invested in an RRSP. Therefore, in most cases, the money in your RRSP will remain untouched when you file a Consumer Proposal.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>When you file a Consumer Proposal, you enter a legal process. The terms of your Proposal will detail the payments you are required to make as well as the term of the proposal. Once you have completed these payments and fulfilled all duties associated with your Consumer Proposal, you will receive a Certificate of Full Performance signed by your Licensed Insolvency Trustee. You will then forward a copy of this certificate to the two major credit bureaus (TransUnion and Equifax) in order to let them know that your proposal has been successfully completed. However, the credit bureaus will likely also be notified by the Licensed Insolvency Trustee of your completion. It is recommended that you request a free copy of your credit report once per year to check its status and to ensure all your debts are designated as being resolved through the Proposal process. Sometimes errors can creep into a credit report – by monitoring the report yearly you can request a correction from the credit bureau and keep your credit score from dropping due to errors.\u003C/p>\r\n\u003C!-- /wp:paragraph -->","What is a Consumer Proposal and How Can It Help You?","closed","what-is-a-consumer-proposal","2025-01-10 07:52:28","2025-01-10 12:52:28","https://www.farber.ca/blog/consumer-proposal/","blog","0","raw",{"ID":313,"post_author":38,"post_date":314,"post_date_gmt":315,"post_content":316,"post_title":317,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":318,"to_ping":37,"pinged":37,"post_modified":319,"post_modified_gmt":320,"post_content_filtered":37,"post_parent":44,"guid":321,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2492,"2016-08-03 16:01:00","2016-08-03 20:01:00","Dealing with debt can feel overwhelming, but the good news is that there are options available in Canada to help you find relief. Two of the most popular solutions are consumer proposals and bankruptcy.\r\n\r\nWhile both can help you get back on track, understanding the differences between a consumer proposal vs. bankruptcy can help you decide which option suits you best. Let us break down both so you can decide which one might be a better option for you!\r\n\u003Ch2 aria-level=\"2\">What is a Consumer Proposal?\u003C/h2>\r\nYou may not have heard of a consumer proposal before. Think of a \u003Ca href=\"/consumer-proposal\">consumer proposal\u003C/a> as a way to hit “pause” on your debt and negotiate a deal that works for both you and your creditors. Often up to 80% of your debt is forgiven!\r\n\r\nA consumer proposal is a formal and legally-binding debt settlement agreement where you pay back a portion of what you owe over a set period. The monthly payments are based on what you can afford to ensure you make your payments.\r\n\r\nOther perks? It can stop those dreaded collection calls and creditor actions.\r\n\r\nA consumer proposal can only be managed by \u003Ca href=\"/why-a-licensed-insolvency-trustee\">Licensed Insolvency Trustees (LITs)\u003C/a>. They handle all negotiations with your creditors to help take the pressure off your shoulders.\r\n\u003Ch3 aria-level=\"3\">How Does a Consumer Proposal Work with Your Creditors?\u003C/h3>\r\nIt starts by sitting down with a LIT, who looks at your financial situation and helps you propose a deal to your unsecured creditors. Usually, this involves paying back a percentage of the total debt over a few years. The creditors vote on the plan, and if the majority agree, you are good to go!\r\n\u003Ch3 aria-level=\"3\">Who Can Qualify for a Consumer Proposal?\u003C/h3>\r\nThis option is for people who are making an income but find it tough to pay their full debt. To be eligible for a consumer proposal with Farber, you must be at least 18 years old, a Canadian resident or own property in Canada, your total unsecured debts are less than $250,000 and have enough income to make regular payments.\r\n\r\nWe recommend you speak with our team to talk about qualifications when considering if a consumer proposal, or any other debt-relief solution, is right for you.\r\n\u003Ch3 aria-level=\"3\">What Are the Key Benefits of a Consumer Proposal?\u003C/h3>\r\n\u003Cul>\r\n \t\u003Cli>\u003Cstrong>Keep your assets:\u003C/strong> You do not have to worry about losing your house or car, unlike in some other debt-relief options.\u003C/li>\r\n \t\u003Cli>\u003Cstrong>Stop collection calls and creditor actions:\u003C/strong> You will no longer have to feel a sense of panic whenever the phone rings again. Once a consumer proposal is accepted, your unsecured creditors will have to stop hassling you.\u003C/li>\r\n \t\u003Cli>\u003Cstrong>Predictable payments:\u003C/strong> \u003Ca href=\"/blog/pros-and-cons-of-filing-a-consumer-proposal\">Expect no surprises with a consumer proposal \u003C/a>and based on what you can afford, so you can budget more easily.\u003C/li>\r\n \t\u003Cli>\u003Cstrong>0% interest:\u003C/strong> Your interest charges are frozen on most debt, and you can expect 0% interest on your remaining debt.\u003C/li>\r\n\u003C/ul>\r\n\u003Ch2 aria-level=\"2\">What is Bankruptcy?\u003C/h2>\r\nNow let’s look at the other option that you have probably heard more about —bankruptcy\r\n\r\n\u003Ca href=\"/bankruptcy\">Bankruptcy\u003C/a>, on the other hand, is a way to get rid of most of your debt if paying it back just is not possible. It is more of a last-resort option when you need a clean slate, but it comes with certain trade-offs, like giving up some of your assets.\r\n\r\nMany people think bankruptcy may be their only option, but it is not! We recommend exploring all your options and getting professional advice before moving forward with bankruptcy.\r\n\u003Ch3 aria-level=\"3\">How Does Filing for Bankruptcy Work?\u003C/h3>\r\nWhen you file for bankruptcy, a Licensed Insolvency Trustee takes over and manages your case. Your debts are legally discharged, which means you are no longer required to pay them back.\r\n\r\nThey will handle things like selling off some of your assets (do not worry — \u003Ca href=\"/blog/exempt-assets-in-bankruptcy\">there are exemptions for things like basic household items\u003C/a>). Once the process is complete, most of your unsecured debts are wiped out, giving you a fresh start.\r\n\u003Ch3 aria-level=\"3\">What Are the Eligibility Criteria for Bankruptcy?\u003C/h3>\r\nYou can file for bankruptcy with Farber if you are at least 18 years old, a Canadian resident or own property/have carried on a business within the last year, and your debts exceed the total value of your assets, or you are unable to repay your debts as they come due.\r\n\r\nAs with the consumer proposal, we recommend you speak with our team to talk about qualifications when considering if bankruptcy is right for you.\r\n\u003Ch3 aria-level=\"3\">What Happens When You Declare Bankruptcy?\u003C/h3>\r\n\u003Cul>\r\n \t\u003Cli>\u003Cstrong>You might lose assets\u003C/strong>: Some of your belongings may need to be sold to repay creditors, but many essential items are protected and most of your debts are wiped out.\u003C/li>\r\n \t\u003Cli>\u003Cstrong>Credit impact:\u003C/strong> Bankruptcy stays on your record for six to seven years, or up to 14 years if it is your second bankruptcy.\u003C/li>\r\n \t\u003Cli>\u003Cstrong>Makes it harder to borrow again:\u003C/strong> If you are looking to borrow money in the future, like for a mortgage or to obtain a new credit card, it might be difficult with bankruptcy on your record.\u003C/li>\r\n\u003C/ul>\r\nSpeaking with a LIT can help you understand the pros and cons of bankruptcy and how it can affect you.\r\n\u003Ch2 aria-level=\"2\">Consumer Proposal vs. Bankruptcy: What is the Difference?\u003C/h2>\r\n\u003Ch3 aria-level=\"3\">How Each Option Affects Your Ability to Keep Assets\u003C/h3>\r\nIf keeping your house or car is important to you, a consumer proposal is probably the better choice. With bankruptcy, you might have to forfeit non-essential assets.\r\n\u003Ch3 aria-level=\"3\">How Debt Repayment Differs Between These Two Options\u003C/h3>\r\nWith a consumer proposal, you agree to repay part of your debt through a structured plan, but at a reduced amount. Bankruptcy, however, wipes out most unsecured debts entirely, giving you a fresh start.\r\n\u003Ch3 aria-level=\"3\">What Happens to Your Credit in Each Situation\u003C/h3>\r\nWhen it comes to a consumer proposal vs. bankruptcy, the former is a bit kinder to your credit score and only stays on your report for three years after you complete the repayment. Bankruptcy, on the other hand, \u003Ca href=\"https://www.rbcroyalbank.com/en-ca/my-money-matters/debt-and-stress-relief/bankruptcy/personal-bankruptcy/what-happens-to-your-credit-score-if-you-declare-bankruptcy/\" target=\"_blank\" rel=\"noopener\">sticks around longer\u003C/a> — typically six to seven years.\r\n\u003Ch3 aria-level=\"3\">Comparing the Costs of Filing a Consumer Proposal or Bankruptcy\u003C/h3>\r\nBoth options come with fees, mostly for your Licensed Insolvency Trustee. In a consumer proposal, those fees are usually rolled into your monthly payments.\r\n\r\nBankruptcy can have additional costs, such as legal fees. The cost in Canada varies person-by-person. It is based on your monthly income, certain expenses, the size of your family unit and your assets.\r\n\r\nFees to a LIT for both consumer proposal and bankruptcy are federally regulated and deducted from the funds you contribute. It is best to book a free consultation with a LIT to go over the costs involved with either option.\r\n\u003Ch2 aria-level=\"2\">How Do You Decide Which One Is Right for You?\u003C/h2>\r\n\u003Ch3 aria-level=\"3\">Consider Your Financial Situation First\u003C/h3>\r\nIf you have valuable assets that you want to keep, a consumer proposal may be a better fit. Bankruptcy might be more suitable if you are struggling to make any payments at all. You will have to weigh out the pros and cons of each one depending on your financial situation. This also includes looking at the amount of debt you have and your ability to repay your debt or make regular payments.\r\n\u003Ch3 aria-level=\"3\">Think About Your Long-Term Financial Goals\u003C/h3>\r\nDo you want to get your credit back on track faster? A consumer proposal may help you do that since it has a shorter-lasting impact on your credit report. Bankruptcy gives you a fresh start, but it takes \u003Ca href=\"https://borrowell.com/blog/how-to-rebuild-your-credit-in-canada\" target=\"_blank\" rel=\"noopener\">longer to rebuild your credit\u003C/a>.\r\n\u003Ch3 aria-level=\"3\">Do Not Overlook the Emotional and Psychological Factors\u003C/h3>\r\nNavigating debt relief can bring up a lot of emotions, and it is important to prioritize your well-being along the way. While the thought of bankruptcy might feel overwhelming, especially with the possibility of losing assets, remember that you are taking a positive step toward regaining control of your finances.\r\n\r\nA consumer proposal can be a gentler option, allowing you to resolve your debts while maintaining more stability. No matter which path you choose, know that you are making a proactive choice to improve your financial future — and that is something to be proud of!\r\n\u003Ch3 aria-level=\"3\">Always Seek Professional Advice from a Licensed Insolvency Trustee\u003C/h3>\r\nMaking this decision is not something you must do alone. In fact, you should not have to do it alone at all. We always recommend that you consult and seek advice from an insolvency professional.\r\n\r\nSpeaking with a Licensed Insolvency Trustee can help you evaluate all your options and choose the best path based on your unique financial situation. They will work with you to find a debt-relief solution that will reduce your debt stress and help you rebuild your financial future and relationship with money.\r\n\u003Ch2 aria-level=\"2\">Learn How Farber Can Help You Find the Right Debt Solution\u003C/h2>\r\nAt Farber Debt Solutions, we understand how overwhelming it can feel when debt takes control. If you need further help choosing between a consumer proposal vs. bankruptcy, our team of Licensed Insolvency Trustees is here to help guide you.\r\n\r\nWe will work with you to find the best option for your situation, so you can start building a brighter financial future. \u003Ca href=\"/book-a-consultation\">Book your free no-obligation consultation today\u003C/a> and take the first step toward gaining control of your finances!","Consumer Proposal or Bankruptcy: Which Option Is For You?","bankruptcy-vs-consumer-proposal","2025-12-30 06:32:30","2025-12-30 11:32:30","https://www.farber.ca/blog/bankruptcy-versus-a-consumer-proposal/",{"ID":323,"post_author":38,"post_date":324,"post_date_gmt":325,"post_content":326,"post_title":327,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":328,"to_ping":37,"pinged":37,"post_modified":329,"post_modified_gmt":330,"post_content_filtered":37,"post_parent":44,"guid":331,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2461,"2020-03-04 19:43:47","2020-03-05 00:43:47","\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-getting-out-of-debt-without-bankruptcy\">Getting Out of Debt Without Bankruptcy\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>When you are dealing with substantial amounts of debt, it can feel so stressful. You might see no way to solve your financial pressures. However, there are always things you can do to get yourself out of debt. Filing a bankruptcy is one option but it is usually considered the “option of last resort” after all other available options are considered. For many of us, a bankruptcy is something that may not be necessary. Let us look at some other options worth exploring:\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading {\"level\":3} -->\r\n\u003Ch3 id=\"h-cutting-costs\">Cutting Costs\u003C/h3>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>This is often a lot easier than we envision it might be. A quick review of a household budget can help you decide which expenses you can consider chopping or reducing. While it may not be possible to reduce some of your fixed expenses (such as your rent or mortgage payments each month) you can have some control over your variable expenses (such as groceries, clothing, transportation, entertainment, etc.). Once you have found ways to cut down your spending, put the money you end up saving towards your debt repayment or (after your debt has been cleared up) that all-important emergency savings account.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading {\"level\":3} -->\r\n\u003Ch3 id=\"h-speaking-with-creditors\">Speaking with Creditors\u003C/h3>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Our first instinct is to avoid our creditors. However, speaking with them could provide you with an excellent opportunity to negotiate any debt owing to them. If you genuinely explain to your creditors that you are having difficulty affording your expenses and paying down your debt, some, or all of them, may be willing to work with you. Creditors could give you more time to pay back your debt and/or they may consider reducing the amount of interest you pay. They may even offer to settle your debt for a lesser amount than owed. It is amazing how one quick phone call might save you thousands of dollars.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>In most cases, creditors get an exceedingly small payment, if any, when a person files for bankruptcy. So, creditors might be willing to negotiate instead of receiving virtually nothing from the Trustee if you file for bankruptcy protection.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading {\"level\":3} -->\r\n\u003Ch3 id=\"h-credit-counselling-and-debt-settlement\">Credit Counselling and Debt Settlement\u003C/h3>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Many credit counselling services in Canada offer debt management programs otherwise known as debt settlement plans. Through these plans, the debt settlement company negotiates with your creditors to convince them to either reduce the interest owed or accept less of the total amount of debt owed.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Take note that many debt settlement companies are for-profit organizations (despite the “not-for-profit\" signs on their doors and websites), and some might make unrealistic promises to you when selling you on their services.  It is important to do some thorough research and ensure you are working with a reputable agency before you sign the contract. Creditors know they are not legally required to work with a debt settlement firm or a credit counsellor (unlike a Licensed Insolvency Trustee, as our firm is).\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Some creditors working with the credit counsellor may agree to reduce the debt owed to them, but some could outright refuse to negotiate and can then pursue you on their own. You may also be required to pay an upfront fee to work with these credit counselling organizations. The fee is charged up front, before any work has been done, so even if the creditors do not agree to negotiate you have still had to pay something. It is also important to be aware that government debt, such as CRA (the Canada Revenue Agency) tax debt or even student loan debt, cannot be dealt with through a credit counselling service. Only a Licensed Insolvency Trustee such as Farber can assist you with those types of debts.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading {\"level\":3} -->\r\n\u003Ch3 id=\"h-debt-consolidation\">Debt Consolidation\u003C/h3>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Debt consolidation is a process that involves obtaining a loan from one lender to pay off various other creditors. The goal of this process is to get a debt consolidation loan with a lower overall interest rate than your current debts. If you are successful in qualifying for such a loan, you will save money on interest payments over time and resolve your debt faster.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>However, it can be difficult to get a low interest rate on a debt consolidation loan (especially if you have poor credit due to missed payments). Also, while you may save money on interest, you will still be responsible for paying back 100% of the debt that you owe.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading {\"level\":3} -->\r\n\u003Ch3 id=\"h-consumer-proposal\">Consumer Proposal\u003C/h3>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>You have the legal right in Canada to make a formal proposal to your creditors. This is called a Consumer Proposal. It is a legal process designed to allow you to formally settle your debts, often for a portion of the outstanding debt amount and without further interest. For example, one recent proposal offered $12,000 to the creditors on a total debt load of $40,000 and was accepted by the creditors.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>A Consumer Proposal will protect you from collection agencies and legal actions by your creditors through the courts. A Consumer Proposal can last up to five years and involve a manageable monthly amount or other terms of repayment (such as a lump sum settlement). Creditors are given 45 days (about 1 and a half months) from the date of filing to vote on whether to accept the Consumer Proposal “as is” or request a larger sum.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Licensed Insolvency Trustees (formerly known as Bankruptcy Trustees) are the only professionals licensed to administer Consumer Proposal or Bankruptcy processes in Canada. However, this is not the only way they can advise you on how to handle your debt pressures. They must provide you with details of all the options available to you.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Most trustees offer a free consultation, and if a proposal is filed then all the Trustee’s fees are taken from the proposal payments you make each month. In other words – you do not pay the Trustee separately.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Speaking with a trustee can be an effective way to get back on a road to financial health. If you feel you need some assistance with your debts, and would like to avoid bankruptcy, if possible, please click on the FREE CONSULTATION button, below, or give us a call today. We are here to listen – and to help!\u003C/p>\r\n\u003C!-- /wp:paragraph -->","Getting Out of Debt Without Having to File for Bankruptcy","how-to-get-out-of-debt-without-filing-for-bankruptcy","2025-01-10 07:37:58","2025-01-10 12:37:58","https://www.farber.ca/blog/how-to-get-out-of-debt-without-filing-for-bankruptcy/",{"ID":333,"post_author":38,"post_date":334,"post_date_gmt":335,"post_content":336,"post_title":337,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":338,"to_ping":37,"pinged":37,"post_modified":339,"post_modified_gmt":340,"post_content_filtered":37,"post_parent":44,"guid":341,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2422,"2023-05-09 16:13:53","2023-05-09 20:13:53","\u003C!-- wp:paragraph -->\r\n\u003Cp>Debt is a difficult thing to talk about. Even in 2023, debt is still associated with feelings of shame – despite \u003Ca href=\"https://www.canada.ca/en/financial-consumer-agency/programs/research/canadian-financial-capability-survey-2019.html\" target=\"_blank\" rel=\"noreferrer noopener\">almost three-quarters of Canadians carrying some type of debt\u003C/a>, according to Stats Canada. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>If you're not sure if you're \u003Ca href=\"https://www.afarber.com/blog/good-debt-vs-bad-debt-how-to-know-the-difference/\" rel=\"noreferrer noopener\">carrying good or bad debt\u003C/a> or are just finding your situation too overwhelming to deal with on your own, our team is always here to listen – and it starts with a call. But, we know that picking up the phone can be scary, and you might be hesitant. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>So, we spoke to \u003Ca href=\"https://www.afarber.com/person/graeme-whitehead/\" rel=\"noreferrer noopener\">Graeme Whitehead\u003C/a>, a partner and Vice President of Central Operations and a Licensed Insolvency Trustee at Farber Debt Solutions (who's been in the industry for 22 years!) to get the scoop.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Here is your step-by-step guide to what you can expect from your free consultation.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-step-1-make-the-initial-call-or-inquiry\">Step 1: Make the initial call or inquiry\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>First things first. You need to \u003Ca href=\"https://www.afarber.com/contact-us/new-customers/\" rel=\"noreferrer noopener\">reach out to us online or make the call\u003C/a>. We know it's a difficult thing to do, and it's a big first step. But our approach is based on over 40 years of experience, and our team is here to listen without judgement. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\"We treat the call like we're in an emergency room,\" said Whitehead. \"We realize that time is of the essence, and nobody wants to wait – so we do live transfers if someone is available, or schedule an appointment for the same day, or the next, whatever the person would like.\"\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>By just taking that first step, you'll be able to learn about all of the debt solutions available to you for free, with no pressure or obligation to move forward. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-step-2-get-your-first-free-consultation\">Step 2: Get your first free consultation\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Next, you'll have your first consultation. According to Whitehead, most people haven't told anybody about their debt – including their spouses. So, it's our job to listen, which may sound simple, but just listening can provide them with a \u003Ca href=\"https://www.afarber.com/blog/debt-mental-health-happiness/\" rel=\"noreferrer noopener\">massive sense of relief.\u003C/a> \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\"I was meeting with one person, and he told me that he was really ashamed and that he felt like such a loser,\" said Whitehead. \"But I said to him, 'I can tell you why you're not a loser – losers don't pick up the phone, losers don't book a meeting, losers don't talk about it – losers do nothing.'\"\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Your consultation with us is also a safe space for you to share your concerns with an experienced professional. Our team is available by video, phone, or in person, so you can chat with us in whichever way you feel most comfortable. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\"There's no shame in getting professional guidance,\" said Whitehead. \"We look forward to helping someone feel better during that first initial meeting – it's like a big, giant exhale, like a physical burden being released.\"\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-step-3-additional-free-consultations-as-necessary\">Step 3: Additional free consultations, as necessary\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Our team takes the time to fully understand what you're going through. We also need some key information from you to find the best solution. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>For example, maybe you just wanted to start the conversation and get comfortable first, or you don't have all the information ready – and that's OK. Our team requires pay information, a full list of who you owe money to, account numbers, information about your investments, and information about your home if you own one. So, it could take a few follow-up appointments to determine the right solution. And, we take the time necessary to go through all of your options with you. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\"We present people all of their options in bite-sized chunks so that they can understand it,\" said Whitehead. \"That's also why we tend to have multiple meetings – we don't want to overwhelm anyone.\"\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-step-4-presenting-the-best-debt-solution-for-you\">Step 4: Presenting the best debt solution for you\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Lastly, we'll go over what we believe is the best solution for you. It's important to note that it might be a service with us, such as a \u003Ca href=\"https://www.afarber.com/how-we-help/consumer-proposal/\" rel=\"noreferrer noopener\">Consumer Proposal\u003C/a>, and it might not – and there’s no pressure either way. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>“Let’s say there’s a credit counselling option that’s a better fit, we’ll send them there,” said Whitehead. “We’ll do what’s right by each person, because we believe that’s a good business practice.” \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>Farber Debt Solutions is legally obligated to share all of your options, and we’re more than happy to provide you with that guidance on a human level.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:heading -->\r\n\u003Ch2 id=\"h-the-bottom-line\">The bottom line\u003C/h2>\r\n\u003C!-- /wp:heading -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>We know reaching out to book an initial consultation can be a huge first step. But this is an important part of your life, and we would love to help you find a better solution to deal with your debt. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>While people often tell Whitehead that his job sounds depressing, he says it's, in fact, quite the opposite. \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\"Maybe it would be sad if we didn't have the tools to help people, but we have really great tools,\" said Whitehead. \"We look at it as so much more, we can save people's marriages or houses, and that's powerful.\" \u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>\u003Cbr />If you're feeling stressed or overwhelmed by your debt, \u003Ca href=\"https://www.afarber.com/contact-us/\" rel=\"noreferrer noopener\">contact us\u003C/a> at Farber Debt Solutions today. We're here to listen and give you the tools to help you feel confident and relieved that a solution for your debt is possible.\u003C/p>\r\n\u003C!-- /wp:paragraph -->","Book a Free Consultation for Expert Debt Solutions","free-consultation-debt-solutions","2025-01-10 07:30:30","2025-01-10 12:30:30","https://www.farber.ca/blog/free-consultation-debt-solutions/",{"ID":343,"post_author":38,"post_date":344,"post_date_gmt":345,"post_content":346,"post_title":347,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":348,"to_ping":37,"pinged":37,"post_modified":349,"post_modified_gmt":350,"post_content_filtered":37,"post_parent":44,"guid":351,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2475,"2018-08-16 21:30:00","2018-08-17 01:30:00","\u003C!-- wp:heading -->\r\n\u003Cp>We have all been there—\u003Ca href=\"/blog/unexpected-expenses\">an unexpected bill shows up\u003C/a>, payday feels like it is a million years away, and you are already trying to find relief through \u003Ca href=\"https://www.farber.ca/debt-relief\">debt solutions in Canada\u003C/a> to help tackle your load.\u003C/p>\r\n\u003Cp>You may be wondering how you are going to make it through the week without everything falling apart. Enter payday loans, flashing promises of quick cash and no hassle. Tempting, right?\u003C/p>\r\n\u003Cp>But let’s pump the brakes for a second. Payday loans might look like a quick fix, but they can seriously mess up your finances in the long run. If you are stressed about money, there are better options than jumping into the payday loan cycle. Let’s get into why payday loans are bad news and what you can do instead.\u003C/p>\r\n\u003Ch2>Why Payday Loans Are Risky\u003C/h2>\r\n\u003Cp>Payday loans might sound like a lifesaver at first. They are marketed as quick, no-fuss ways to get cash when you are strapped. But here is the catch… They come with very high interest rates, sneaky fees, and a knack for trapping people in a never-ending loop of debt.\u003C/p>\r\n\u003Ch3>The High Costs of Payday Loans\u003C/h3>\r\n\u003Cp>Payday loans charge some of the highest interest rates you will ever see. In Canada, payday loan lenders can legally charge up to $15 for every $100 borrowed. Does not sound too bad? Think again—that works out to an annual percentage rate (APR) of over 390%. If you compare that to a credit card cash advance, which usually has an interest rate closer to 20%, you will start to see the problem.\u003C/p>\r\n\u003Cp>On top of that, payday lenders love to charge origination fees, late payment penalties, and other hidden charges that can quickly add up. Origination fees alone can make the cost of borrowing much higher than you anticipated.\u003C/p>\r\n\u003Cp>You might think you are borrowing $300 to get you through the week, but by the time you pay interest, origination fees, and late penalties, you are on the hook for way more than you expected.\u003C/p>\r\n\u003Cp>Let’s not forget that payday loans are short-term loans by design, usually requiring full repayment within two weeks or by your next paycheque. Unlike installment loans that allow you to make monthly payments over time, payday loans can eat up your entire paycheque, leaving you scrambling to cover other essential expenses.\u003C/p>\r\n\u003Ch3>How Payday Loans Trap Borrowers in Debt Cycles\u003C/h3>\r\n\u003Cp>Here is the ugly truth about payday loans. They are designed to keep you borrowing.\u003C/p>\r\n\u003Cp>Let’s say you take out a loan to cover this month’s rent. When payday rolls around, you realize the repayment amount eats up your entire paycheque. So, what do you do? Take out another payday loan. And just like that, you are stuck in a payday loan cycle that is hard to escape.\u003C/p>\r\n\u003Cp>This cycle happens because payday loans do not address the root of the financial problem—they just slap a bandage on it. Borrowers often end up juggling multiple debts, paying interest charges, and watching their finances spiral out of control.\u003C/p>\r\n\u003Ch2>What Happens If You Cannot Repay a Payday Loan?\u003C/h2>\r\n\u003Cp>So, what happens if you cannot pay back a payday loan on time? It is not pretty. Falling behind on payments can lead to serious troubles that can harm your finances and your peace of mind.\u003C/p>\r\n\u003Ch3>Late Fees and Payday Loan Penalties\u003C/h3>\r\n\u003Cp>Miss a payment? Most of these loans charge high fees for late payments. And if the lender tries to take the repayment directly from your bank account and there is not enough money, you could also get hit with overdraft protection fees from your bank. These extra costs snowball quickly, making it even harder to get ahead.\u003C/p>\r\n\u003Ch3>Impact on Credit Score and Financial Health\u003C/h3>\r\n\u003Cp>Payday loans do not usually help you build credit, even if you pay them off on time. But if you fail to repay it, lenders can report it to the credit bureaus, and this will hurt your credit score.\u003C/p>\r\n\u003Cp>You might face calls from collection agencies, legal action, or even \u003Ca href=\"/blog/how-to-stop-a-wage-garnishments\">wage garnishment\u003C/a>, making it even harder to get back on your feet.\u003C/p>\r\n\u003Ch3>The Psychological Toll of Payday Loans\u003C/h3>\r\n\u003Cp>It is not just your wallet that suffers: your mental health can take a hit too. The stress of juggling multiple debts, avoiding collections, and feeling trapped in a financial mess can lead to anxiety, depression, and \u003Ca href=\"/blog/how-to-stop-debt-from-keeping-you-up-all-night\">sleepless nights\u003C/a>. Payday loans might promise quick relief, but the emotional cost—and interest rates—often outweigh the temporary fix.\u003C/p>\r\n\u003Cp>Being stuck in a payday loan cycle can make you feel powerless, ashamed, or overwhelmed. It is important to remember that you are not alone, and there are better solutions out there.\u003C/p>\r\n\u003Ch2>Payday Loan Alternatives\u003C/h2>\r\n\u003Cp>If payday loans are such a bad deal, what can you do instead? The good news is there are “safer” alternatives that can help you get through tough times without falling into a payday loan trap.\u003C/p>\r\n\u003Ch3>Get a Personal Loan from Banks or Credit Unions\u003C/h3>\r\n\u003Cp>Unlike payday loans, getting a personal loan, like the ones from a bank or credit union, has a much lower interest rate and longer repayment terms. If you have a steady income and good credit, a personal loan can be a good option.\u003C/p>\r\n\u003Cp>Even if you do not have a good credit score, some banks or credit unions may offer secured loans that use collateral to approve your application.\u003C/p>\r\n\u003Ch3>Borrow Money from Friends or Family\u003C/h3>\r\n\u003Cp>It might feel awkward to ask for help, but if you need to borrow money from someone, pick someone you trust to help you with your payday loan debt. Just be upfront about your repayment plan to avoid any misunderstandings or strained relationships.\u003C/p>\r\n\u003Ch3>Payday Loan Alternatives You Might Not Have Considered\u003C/h3>\r\n\u003Cp>If the above options do not work for you, there are other ways to avoid payday loans:\u003C/p>\r\n\u003Cul>\r\n\u003Cli>\u003Cstrong>Overdraft Protection:\u003C/strong> Many banks offer overdraft protection for your chequing account. While there may still be fees, they are usually much lower than payday loan charges.\u003C/li>\r\n\u003Cli>\u003Cstrong>Cash Advance Apps:\u003C/strong> Some apps offer small cash advances against your upcoming paycheque without the excessive fee payday loans charge. These can be a safer way to cover short-term gaps.\u003C/li>\r\n\u003Cli>\u003Cstrong>Peer-to-Peer Lending:\u003C/strong> Platforms that connect borrowers with individual lenders can provide lower interest rates than payday lenders.\u003C/li>\r\n\u003C/ul>\r\n\u003Cp>It is important to understand your financial situation and the risks of additional loans. We recommend speaking with a \u003Ca href=\"/why-a-licensed-insolvency-trustee\">Licensed Insolvency Trustee\u003C/a> to understand your options before taking on more debt that you cannot handle.\u003C/p>\r\n\u003Ch2>How to Avoid Payday Loans\u003C/h2>\r\n\u003Cp>The best way to deal with payday loans is to avoid needing them in the first place. While that is easier said than done, there are some strategies you can use to help you manage your finances and avoid the temptation of short-term, payday loans.\u003C/p>\r\n\u003Ch3>Build an Emergency Savings Fund\u003C/h3>\r\n\u003Cp>An emergency fund is your financial safety net—it is what keeps you from turning to payday lenders when unexpected expenses pop up. Even if you are living paycheque to paycheque, building a fund is possible with small, consistent steps.\u003C/p>\r\n\u003Ch3>Explore Income Assistance Programs\u003C/h3>\r\n\u003Cp>When you are in a financial bind, turning to income assistance programs is a better option than taking out a payday loan. These programs can provide the support you need to get back on your feet.\u003C/p>\r\n\u003Cul>\r\n\u003Cli>\u003Cstrong>Utility Relief Programs:\u003C/strong> Many utility companies offer programs to help with heating, electricity, and water bills if you are struggling to keep up. Reach out to your provider to see what is available.\u003C/li>\r\n\u003Cli>\u003Cstrong>Government Assistance:\u003C/strong> Programs like child benefits, housing subsidies, or unemployment support can provide short-term financial relief. Look into your provincial or federal government’s resources to see what you qualify for.\u003C/li>\r\n\u003Cli>\u003Cstrong>Local Food Banks and Nonprofits\u003C/strong>: If grocery bills are eating into your budget, food banks can help lighten the load, freeing up cash for other essential expenses.\u003C/li>\r\n\u003C/ul>\r\n\u003Cp>Taking advantage of these resources is a way to soothe your financial situation without digging yourself deeper into debt.\u003C/p>\r\n\u003Ch3>Learn to Budget\u003C/h3>\r\n\u003Cp>Budgeting is \u003Ca href=\"/blog/how-to-avoid-overspending\">an important tool\u003C/a> for anyone who overspends or simply wants to avoid financial stress. A budget gives you control over your money and helps you prioritize your spending.\u003C/p>\r\n\u003Cp>You can use a budgeting app on your phone to monitor your spending. Alternatively, go old-school with a notebook and write down every expense. Seeing where your money goes can be eye-opening and help you figure out what areas to cut back.\u003C/p>\r\n\u003Cp>Make savings a non-negotiable part of your budget. Treat it like a bill you have to pay every month. When you prioritize saving, you are less likely to rely on loans or credit cards during tough times.\u003C/p>\r\n\u003Ch2>Break the Cycle of Living Paycheque to Paycheque\u003C/h2>\r\n\u003Cp>If you feel like there is never enough money left at the end of the month, it might be time to rethink your financial habits. Here are some tips to help:\u003C/p>\r\n\u003Cul>\r\n\u003Cli>\u003Cstrong>Increase Your Income:\u003C/strong> Side hustles like freelance work, tutoring, or ridesharing can bring in extra money to pad your budget.\u003C/li>\r\n\u003Cli>\u003Cstrong>Focus on Debt Repayment:\u003C/strong> If you have debt piling up, we recommend reaching out to a \u003Ca href=\"/blog/what-is-a-licensed-insolvency-trustee\">Licensed Insolvency Trustee\u003C/a> to understand your options. Once you tackle your debt and relieve yourself of that stress, you can focus on rebuilding your financial health to ensure that you do not have to rely on payday loans.\u003C/li>\r\n\u003Cli>\u003Cstrong>Set Clear Financial Goals:\u003C/strong> Whether it is saving for a vacation or building your emergency fund, having a clear goal can make all the difference. Goals give your savings a purpose, making it easier to stay disciplined and motivated.\u003C/li>\r\n\u003Cli>\u003Cstrong>Build a Support System:\u003C/strong> Talk to a trusted friend or family member about your financial goals, join a support group, or consult with the \u003Ca href=\"/our-team\">Farber team\u003C/a>. Having someone to share your journey with can make all the difference.\u003C/li>\r\n\u003C/ul>\r\n\u003Ch2>How Farber Can Help\u003C/h2>\r\n\u003Cp>Payday loans might seem like a quick fix, but the long-term costs far outweigh the short-term relief. By exploring payday loan alternatives, building healthy financial habits, and getting support from professionals like Farber, you can take control of your finances and leave payday lenders in the dust.\u003C/p>\r\n\u003Cp>But, if you are already stuck in the payday loan cycle, you do not have to face it alone. Whether you are dealing with multiple debts, bad credit, or payday loans charge after charge, we can guide you toward real solutions.\u003C/p>\r\n\u003Cp>\u003Ca href=\"/book-a-consultation\">Connect with us today for a free consultation\u003C/a> so we can help you get back on track!\u003C/p>\r\n\u003C!-- /wp:paragraph -->","Payday Loan Alternatives: Safer Ways to Borrow Money","payday-loans-alternatives","2025-12-30 06:29:10","2025-12-30 11:29:10","https://www.farber.ca/blog/payday-loans-alternatives-why-you-should-avoid-them/",{"ID":353,"post_author":38,"post_date":354,"post_date_gmt":355,"post_content":356,"post_title":357,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":358,"to_ping":37,"pinged":37,"post_modified":359,"post_modified_gmt":360,"post_content_filtered":37,"post_parent":44,"guid":361,"menu_order":44,"post_type":309,"post_mime_type":37,"comment_count":310,"filter":311},2501,"2015-02-03 23:37:44","2015-02-04 04:37:44","\u003C!-- wp:paragraph -->\r\n\u003Cp>We recently filed a Consumer Proposal (CP) for a gentleman who had a sizable amount of debt, mostly because of his failed business. This man was dealing with a combination of credit card debt, CRA (Canada Revenue Agency) tax and HST debt and a credit union loan taken out through the business he had owned, but which he had personally guaranteed.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>At the time of the filing of the Consumer Proposal, he did not believe any of his debt had been guaranteed by a third party. However, after filing his Consumer Proposal he remembered the credit union loan he had arranged had also been guaranteed by a friend. This third-party guarantee had been required by the credit union so the company could qualify for the loan.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>He was obviously worried about the impact his filing of the Proposal would have on his friend and spoke with us on a few occasions regarding his friend’s liability. He had originally hoped that by filing a Consumer Proposal, his friend could not be held responsible for the debt. We explained that even though he had filed a Consumer Proposal, and the credit union had voted in favor of his proposal, his friend was still liable for the credit union loan debt he had guaranteed. If we had been aware of the joint guarantee prior to the filing of the Proposal we would have cautioned him about that. Unfortunately, he forgot about the guarantee until the Proposal was already filed and underway.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>We recommended that his friend consult with a lawyer to see if there were any legal grounds on which to challenge the enforceability of the guarantee. We were able to help further by referring a lawyer specializing in debt issues that the friend could use. We also suggested that if his friend were liable for the debt (apparently his friend had the financial means to cover the debt amount), that the friend would take the place of the credit union in the proposal, which provides for an exceedingly high return to creditors. So, in the end, the friend might not be out as much money as my client had initially feared.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The debtor told me his friend met with the lawyer, who had suggested the friend pay out the credit union and take back an assignment of the credit union’s debt, which means the friend became the debtor’s creditor for money paid to the Credit Union. By doing this the friend would be entitled to receive a portion of his payments made under the Consumer Proposal.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>For illustrative purposes, let us assume that the guarantee was for $10,000 and the Consumer Proposal was paying 50 cents on the dollar. The friend would pay the Credit Union $10,000 and in turn have the right to receive $5,000 paid out on the Proposal, thus leaving him short $5,000.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>The debtor was quite disappointed that he had impacted his friend and his finances in this way but was appreciative there was a way of ensuring his friend was able to get back much of the funds paid to settle the debt. This situation is an excellent example of how a Consumer Proposal can be a solution that offers a fair amount of flexibility while helping to resolve a complex debt situation.\u003C/p>\r\n\u003C!-- /wp:paragraph -->\r\n\r\n\u003C!-- wp:paragraph -->\r\n\u003Cp>At Farber we are experts at crafting successful Consumer Proposals for our clients. We file thousands of Proposals every year and each one is unique to that clients’ situation and combination of creditors. We can help you, too. Please CLICK BELOW TO ARRANGE A FREE CONSULTATION or give us a call today. We are here to listen – and to help!\u003C/p>\r\n\u003C!-- /wp:paragraph -->","Can You Get a Personal Loan During a Consumer Proposal?","personal-loan-during-consumer-proposal-canada","2025-01-10 07:30:42","2025-01-10 12:30:42","https://www.farber.ca/blog/loan-guarantees-and-the-impact-of-filing-a-consumer-proposal/",{"fieldGroupName":363,"introduction":364,"type":367,"accordions":368,"faqs":375,"button":425,"enableSeoSchema":124,"anchorId":428},"FaqAccordion",{"supertitle":37,"heading":365,"text":366},"Frequently asked questions","Get answers to the most commonly asked questions about debt-relief solutions, debt terminology, budgeting and more.","faq",[369,372],{"title":370,"content":371},"Lorem ipsum","\u003Cp>Suspendisse at blandit condimentum morbi. Eget eget in lobortis egestas. Dui ac tempus tincidunt lorem tortor. Eget dolor in ipsum amet praesent. Consectetur consequat scelerisque id tristique faucibus maecenas at aliquet odio. Mattis ac cras etiam elit nisl orci.\u003Cbr />\nAccumsan fames ultricies leo volutpat morbi. Est nisl non eleifend enim. Rhoncus viverra vulputate ac vestibulum sed accumsan id donec. Lectus accumsan phasellus pharetra gravida nibh. Amet interdum libero nulla ultricies convallis. Diam eros volutpat posuere libero at natoque eu. Lectus donec sed tincidunt adipiscing arcu neque. In felis hendrerit tristique porttitor. Nulla leo egestas et risus ullamcorper consectetur malesuada. Faucibus mauris vitae pharetra tellus. Sit habitant morbi sed nisl metus platea eget scelerisque.\u003C/p>\n",{"title":373,"content":374},"How do you know if you have too much debt?","\u003Cp>\u003Cspan style=\"font-weight: 400;\">Each financial situation is unique. What could be considered serious debt problems for one person might be fine for someone else. Here’s how to recognize the warning signs about having too much debt:\u003C/span>\u003C/p>\n\u003Cul>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Struggling to pay your debts and expenses each month\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Only making the minimum payments\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Repaying your debt is causing you stress\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Hiding your debt from loved ones\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Receiving calls from creditors or collection agencies\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Using one credit card to repay debts on another\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Missing payments or making payments late\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Taking out new loans to afford to repay your current debts\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Don’t have a budget or can’t stick to a budget\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Not sure how much debt you have\u003C/span>\u003C/li>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Regularly use payday loans\u003C/span>\u003C/li>\n\u003C/ul>\n",[376,386,396,406,416],{"ID":377,"post_author":38,"post_date":378,"post_date_gmt":379,"post_content":380,"post_title":381,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":382,"to_ping":37,"pinged":37,"post_modified":383,"post_modified_gmt":384,"post_content_filtered":37,"post_parent":44,"guid":385,"menu_order":44,"post_type":367,"post_mime_type":37,"comment_count":310,"filter":311},2620,"2024-06-21 14:45:20","2024-06-21 18:45:20","Making the first step to gain control of your debt can feel intimidating. But sharing your concerns with one of our team members means you’ll receive compassionate, non-judgmental advice that can help you make informed financial decisions. Here are some of the other benefits:\r\n\u003Cul>\r\n \t\u003Cli>Your consultation is completely free of charge\u003C/li>\r\n \t\u003Cli>Feeling no pressure or obligation\u003C/li>\r\n \t\u003Cli>Confidential and comfortable space\u003C/li>\r\n \t\u003Cli>Exploring all available solutions\u003C/li>\r\n \t\u003Cli>Finding relief from stress and anxiety knowing a solution is within reach\u003C/li>\r\n\u003C/ul>","What are the benefits of a free consultation?","what-are-the-benefits-of-a-free-consultation","2025-12-24 10:40:39","2025-12-24 15:40:39","https://www.farber.ca/?post_type=faq&p=2620",{"ID":387,"post_author":38,"post_date":388,"post_date_gmt":389,"post_content":390,"post_title":391,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":392,"to_ping":37,"pinged":37,"post_modified":393,"post_modified_gmt":394,"post_content_filtered":37,"post_parent":44,"guid":395,"menu_order":44,"post_type":367,"post_mime_type":37,"comment_count":310,"filter":311},469,"2024-06-13 15:53:43","2024-06-13 19:53:43","A consumer proposal significantly reduces most unsecured debts you have, including:\r\n\u003Cul>\r\n \t\u003Cli>Credit card debt\u003C/li>\r\n \t\u003Cli>Tax debt\u003C/li>\r\n \t\u003Cli>Student loans (if 7 years have passed since you were last a student)\u003C/li>\r\n \t\u003Cli>Personal loans\u003C/li>\r\n \t\u003Cli>Lines of credit\u003C/li>\r\n \t\u003Cli>Payday loans\u003C/li>\r\n\u003C/ul>","What types of debt can I include in a consumer proposal?","what-types-of-debt-can-i-include-in-a-consumer-proposal","2024-06-18 09:38:05","2024-06-18 13:38:05","https://www.farber.ca/?post_type=faq&p=469",{"ID":397,"post_author":38,"post_date":398,"post_date_gmt":399,"post_content":400,"post_title":401,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":402,"to_ping":37,"pinged":37,"post_modified":403,"post_modified_gmt":404,"post_content_filtered":37,"post_parent":44,"guid":405,"menu_order":44,"post_type":367,"post_mime_type":37,"comment_count":310,"filter":311},475,"2024-06-14 08:56:49","2024-06-14 12:56:49","A consumer proposal is a formal agreement between you and your creditors that’s submitted on your behalf by a LIT. It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing – as much as an 80% debt saving. Most importantly, it allows you to retain assets, such as your car and your home.\r\n\r\nA bankruptcy is a legal process in Canada legislated under the Bankruptcy and Insolvency Act (BIA) that’s designed to give a debtor a fresh start. A bankruptcy in Canada can only be filed with a LIT. With bankruptcy, you surrender your assets to the LIT for the general benefit of your creditors. However, you do not lose everything when you file a bankruptcy. Certain exemptions permit you to keep some assets.","What’s the difference between a consumer proposal and bankruptcy?","whats-the-difference-between-a-consumer-proposal-and-bankruptcy","2024-07-22 07:26:36","2024-07-22 11:26:36","https://www.farber.ca/?post_type=faq&p=475",{"ID":407,"post_author":38,"post_date":408,"post_date_gmt":409,"post_content":410,"post_title":411,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":412,"to_ping":37,"pinged":37,"post_modified":413,"post_modified_gmt":414,"post_content_filtered":37,"post_parent":44,"guid":415,"menu_order":44,"post_type":367,"post_mime_type":37,"comment_count":310,"filter":311},476,"2024-06-14 08:57:14","2024-06-14 12:57:14","There are two types of debt consolidation – high-interest debt consolidation loans and interest-free consumer proposals.\r\n\r\nMany people know about debt consolidation loans, but know less about an interest-free form of debt consolidation called a consumer proposal. It’s a better way to consolidate and reduce your debt in many situations. We do not provide loans. If you’re looking for a loan, we suggest you speak to your bank first to see if you qualify for one.\r\n\r\nFor many Canadians, high-interest and hidden-fee debt consolidation loans can lead to even more financial stress and payments that even exceed the original debt. A consumer proposal is a federally regulated program designed to help Canadians reduce and eliminate debt without loans and rebuild their financial security. A debt consolidation loan does not eliminate interest, stop collection calls, wage garnishment, or offer the legal protection a consumer proposal can.","How does debt consolidation work?","how-does-debt-consolidation-work","2024-07-22 07:32:56","2024-07-22 11:32:56","https://www.farber.ca/?post_type=faq&p=476",{"ID":417,"post_author":38,"post_date":418,"post_date_gmt":419,"post_content":420,"post_title":373,"post_excerpt":37,"post_status":10,"comment_status":304,"ping_status":304,"post_password":37,"post_name":421,"to_ping":37,"pinged":37,"post_modified":422,"post_modified_gmt":423,"post_content_filtered":37,"post_parent":44,"guid":424,"menu_order":44,"post_type":367,"post_mime_type":37,"comment_count":310,"filter":311},474,"2024-06-14 08:56:06","2024-06-14 12:56:06","Most people have some debt, usually in the form of a mortgage, car loan or line of credit. But how do you know when it’s too much? Here are a few ways to tell if you have too much debt.\r\n\u003Cul>\r\n \t\u003Cli>Can’t pay monthly expenses without a credit card/line of credit\u003C/li>\r\n \t\u003Cli>Only making minimum payments every month\u003C/li>\r\n \t\u003Cli>Taking out more loans to pay monthly expenses\u003C/li>\r\n \t\u003Cli>Receiving calls from creditors\u003C/li>\r\n \t\u003Cli>Missed payments\u003C/li>\r\n \t\u003Cli>Not sure how much debt you have\u003C/li>\r\n \t\u003Cli>Regularly use overdraft protection on your bank account\u003C/li>\r\n \t\u003Cli>Feeling stressed or worried about your debt\u003C/li>\r\n \t\u003Cli>Hiding your debt or your spending\u003C/li>\r\n\u003C/ul>","how-do-you-know-if-you-have-too-much-debt","2025-03-06 06:14:50","2025-03-06 11:14:50","https://www.farber.ca/?post_type=faq&p=474",{"title":426,"url":427,"target":37},"More FAQs","https://www.farber.ca/faq/","faqs",{"menus":430,"siteSettings":767,"fallbackPages":818},[431,449,460,491,531,564,743],{"locations":432,"menuItems":434},[433],"HEADER_CAMPAIGN",{"nodes":435},[436,442],{"uri":437,"label":186,"cssClasses":438,"description":8,"id":439,"parentId":8,"childItems":440},"#consultation-form",[],"cG9zdDoyNTYz",{"nodes":441},[],{"uri":443,"label":444,"cssClasses":445,"description":8,"id":446,"parentId":8,"childItems":447},"tel:+18449848677","+1 844-984-8677",[],"cG9zdDoyNTY0",{"nodes":448},[],{"locations":450,"menuItems":452},[451],"HEADER_FOCUS",{"nodes":453},[454],{"uri":437,"label":455,"cssClasses":456,"description":8,"id":457,"parentId":8,"childItems":458},"Book Now",[],"cG9zdDoyODc5",{"nodes":459},[],{"locations":461,"menuItems":463},[462],"FOOTER_1",{"nodes":464},[465,470,477,484],{"uri":9,"label":6,"cssClasses":466,"description":8,"id":467,"parentId":8,"childItems":468},[],"cG9zdDoyNTIw",{"nodes":469},[],{"uri":471,"label":472,"cssClasses":473,"description":8,"id":474,"parentId":8,"childItems":475},"/what-you-need-to-know/","What You Need To Know",[],"cG9zdDoyNTIx",{"nodes":476},[],{"uri":478,"label":479,"cssClasses":480,"description":8,"id":481,"parentId":8,"childItems":482},"/what-makes-us-different/","What Makes Us Different",[],"cG9zdDoyNTIy",{"nodes":483},[],{"uri":485,"label":486,"cssClasses":487,"description":8,"id":488,"parentId":8,"childItems":489},"/our-team/","Our Team",[],"cG9zdDozMzI3",{"nodes":490},[],{"locations":492,"menuItems":494},[493],"FOOTER_2",{"nodes":495},[496,503,510,517,524],{"uri":497,"label":498,"cssClasses":499,"description":8,"id":500,"parentId":8,"childItems":501},"/locations/","Locations",[],"cG9zdDozMTA3",{"nodes":502},[],{"uri":504,"label":505,"cssClasses":506,"description":8,"id":507,"parentId":8,"childItems":508},"/faq/","FAQs",[],"cG9zdDoyNTIz",{"nodes":509},[],{"uri":511,"label":512,"cssClasses":513,"description":8,"id":514,"parentId":8,"childItems":515},"/glossary-of-terms/","Glossary of Terms",[],"cG9zdDoyNTI1",{"nodes":516},[],{"uri":518,"label":519,"cssClasses":520,"description":8,"id":521,"parentId":8,"childItems":522},"/careers/","Careers",[],"cG9zdDozNTI5",{"nodes":523},[],{"uri":525,"label":526,"cssClasses":527,"description":8,"id":528,"parentId":8,"childItems":529},"/sitemap/","Site Map",[],"cG9zdDozMTA4",{"nodes":530},[],{"locations":532,"menuItems":534},[533],"FOOTER_3",{"nodes":535},[536,543,550,557],{"uri":537,"label":538,"cssClasses":539,"description":8,"id":540,"parentId":8,"childItems":541},"/accessibility-policy/","Accessibility Policy",[],"cG9zdDozMzk=",{"nodes":542},[],{"uri":544,"label":545,"cssClasses":546,"description":8,"id":547,"parentId":8,"childItems":548},"/terms-of-use/","Terms of Use",[],"cG9zdDozMzg=",{"nodes":549},[],{"uri":551,"label":552,"cssClasses":553,"description":8,"id":554,"parentId":8,"childItems":555},"/privacy-policy/","Privacy Policy",[],"cG9zdDozMzQ=",{"nodes":556},[],{"uri":558,"label":559,"cssClasses":560,"description":8,"id":561,"parentId":8,"childItems":562},"/cookie-notice/","Cookie Notice",[],"cG9zdDozNTI1",{"nodes":563},[],{"locations":565,"menuItems":567},[566],"HEADER_PRIMARY",{"nodes":568},[569,596,600,604,608,612,642,646,650,654,658,662,686,690,694,698,702,727,731,735,739],{"uri":471,"label":570,"cssClasses":571,"description":572,"id":573,"parentId":8,"childItems":574},"Get Debt Help",[],"Discover debt management basics, assess your debt situation with our simple calculator, uncover potential savings with a personalized plan, and learn about our free consultation.","cG9zdDozMw==",{"nodes":575},[576,581,586,591],{"uri":577,"label":578,"cssClasses":579,"description":8,"id":580,"parentId":573},"/what-you-need-to-know","What you need to know",[],"cG9zdDozMjc=",{"uri":582,"label":583,"cssClasses":584,"description":8,"id":585,"parentId":573},"/what-to-expect","What to expect",[],"cG9zdDoyNTE2",{"uri":587,"label":588,"cssClasses":589,"description":8,"id":590,"parentId":573},"/debt-income-calculator/","Debt to income calculator",[],"cG9zdDozMjU=",{"uri":592,"label":593,"cssClasses":594,"description":8,"id":595,"parentId":573},"/debt-payment-calculator/","Debt payment calculator",[],"cG9zdDozMjY=",{"uri":577,"label":578,"cssClasses":597,"description":8,"id":580,"parentId":573,"childItems":598},[],{"nodes":599},[],{"uri":582,"label":583,"cssClasses":601,"description":8,"id":585,"parentId":573,"childItems":602},[],{"nodes":603},[],{"uri":587,"label":588,"cssClasses":605,"description":8,"id":590,"parentId":573,"childItems":606},[],{"nodes":607},[],{"uri":592,"label":593,"cssClasses":609,"description":8,"id":595,"parentId":573,"childItems":610},[],{"nodes":611},[],{"uri":8,"label":613,"cssClasses":614,"description":615,"id":616,"parentId":8,"childItems":617},"Debt Solutions",[],"There is a solution to your debt. Learn about the available debt relief options to manage and reduce your debt.","cG9zdDo4MQ==",{"nodes":618},[619,623,628,632,637],{"uri":9,"label":620,"cssClasses":621,"description":8,"id":622,"parentId":616},"Your debt relief options",[],"cG9zdDoyNTE3",{"uri":624,"label":625,"cssClasses":626,"description":8,"id":627,"parentId":616},"/consumer-proposal/","Consumer proposal",[],"cG9zdDoyMjc=",{"uri":629,"label":140,"cssClasses":630,"description":8,"id":631,"parentId":616},"/bankruptcy/",[],"cG9zdDo0NTg=",{"uri":633,"label":634,"cssClasses":635,"description":8,"id":636,"parentId":616},"/debt-counselling/","Debt counselling",[],"cG9zdDozODA=",{"uri":638,"label":639,"cssClasses":640,"description":8,"id":641,"parentId":616},"/debt-consolidation/","Debt 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300px","https://www.farber.ca/wp-content/uploads/2025/05/awards-2025.png",{"height":794,"width":795,"filePath":796},162,393,"/wp-content/uploads/2025/05/awards-2025.png","11x Consumer Choice Award",{"facebookUrl":799,"instagramUrl":800,"linkedinUrl":801},"https://www.facebook.com/farberdebtsolutions","https://www.instagram.com/farberdebtsolutions/","https://www.linkedin.com/company/a-farber-and-partners","© 2025 A. Farber & Partners Inc. All Rights Reserved",{"enableGlobalAlertBanner":124,"text":804,"bannerColor":805},"\u003Cp>\u003Cb>Important Notice:\u003C/b> We are experiencing issues with our phones. Please visit our \u003Ca href=\"https://www.farber.ca/contact-us/\">Contact Us\u003C/a> page for other ways to connect.\u003C/p>\n","coral",[807,808],"team_listing","team_detail",{"enableCorporationSchema":20,"companyName":810,"companyLogo":811,"companyWebsiteUrl":817},"Farber Debt Solutions",{"node":812},{"srcSet":813,"sizes":791,"mediaItemUrl":814,"altText":37,"mediaDetails":815},"https://www.farber.ca/wp-content/uploads/2025/07/farber-logo.png 300w, https://www.farber.ca/wp-content/uploads/2025/07/farber-logo-150x150.png 150w","https://www.farber.ca/wp-content/uploads/2025/07/farber-logo.png",{"height":55,"width":55,"filePath":816},"/wp-content/uploads/2025/07/farber-logo.png","https://www.farber.ca",{"generic":819,"blog":824,"location":829,"team":834},[820,822],{"languageCode":21,"uri":821},"https://www.farber.ca/",{"languageCode":25,"uri":823},"https://www.farber.ca/fr",[825,827],{"languageCode":21,"uri":826},"https://www.farber.ca/blog",{"languageCode":25,"uri":828},"https://www.farber.ca/fr/blogue",[830,832],{"languageCode":21,"uri":831},"https://www.farber.ca/locations",{"languageCode":25,"uri":833},"https://www.farber.ca/fr/emplacements",[835,837],{"languageCode":21,"uri":836},"https://www.farber.ca/our-team",{"languageCode":25,"uri":838},"https://www.farber.ca/fr/notre-equipe",[840,853,863,874,884,894],{"id":841,"title":303,"uri":842,"excerpt":843,"featuredImage":844},"cG9zdDoyNDUw","/blog/what-is-a-consumer-proposal/","\u003Cp>What Is A Consumer Proposal? A Consumer Proposal is a formal agreement between you and your creditors that is submitted on your behalf by a Licensed Insolvency Trustee (LIT). It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing. This can result […]\u003C/p>\n",{"node":845},{"sourceUrl":846,"altText":37,"srcSet":847,"sizes":848,"mediaDetails":849},"https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9.jpg","https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9-1024x682.jpg 1024w, https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2021/04/Blog-Image-9.jpg 1733w","(max-width: 1024px) 100vw, 1024px",{"height":850,"width":851,"filePath":852},1155,1733,"/wp-content/uploads/2021/04/Blog-Image-9.jpg",{"id":854,"title":317,"uri":855,"excerpt":856,"featuredImage":857},"cG9zdDoyNDky","/blog/bankruptcy-vs-consumer-proposal/","\u003Cp>Dealing with debt can feel overwhelming, but the good news is that there are options available in Canada to help you find relief. Two of the most popular solutions are consumer proposals and bankruptcy. While both can help you get back on track, understanding the differences between a consumer proposal vs. bankruptcy can help you […]\u003C/p>\n",{"node":858},{"sourceUrl":859,"altText":37,"srcSet":860,"sizes":848,"mediaDetails":861},"https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70.jpg","https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70-1024x682.jpg 1024w, https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2016/08/Blog-Image-70.jpg 1733w",{"height":850,"width":851,"filePath":862},"/wp-content/uploads/2016/08/Blog-Image-70.jpg",{"id":864,"title":327,"uri":865,"excerpt":866,"featuredImage":867},"cG9zdDoyNDYx","/blog/how-to-get-out-of-debt-without-filing-for-bankruptcy/","\u003Cp>Getting Out of Debt Without Bankruptcy When you are dealing with substantial amounts of debt, it can feel so stressful. You might see no way to solve your financial pressures. However, there are always things you can do to get yourself out of debt. Filing a bankruptcy is one option but it is usually considered […]\u003C/p>\n",{"node":868},{"sourceUrl":869,"altText":37,"srcSet":870,"sizes":848,"mediaDetails":871},"https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78.jpg","https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78-1024x683.jpg 1024w, https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2020/03/Blog-Image-78.jpg 1732w",{"height":850,"width":872,"filePath":873},1732,"/wp-content/uploads/2020/03/Blog-Image-78.jpg",{"id":875,"title":337,"uri":876,"excerpt":877,"featuredImage":878},"cG9zdDoyNDIy","/blog/free-consultation-debt-solutions/","\u003Cp>Debt is a difficult thing to talk about. Even in 2023, debt is still associated with feelings of shame – despite almost three-quarters of Canadians carrying some type of debt, according to Stats Canada.  If you’re not sure if you’re carrying good or bad debt or are just finding your situation too overwhelming to deal […]\u003C/p>\n",{"node":879},{"sourceUrl":880,"altText":37,"srcSet":881,"sizes":848,"mediaDetails":882},"https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105.jpg","https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105-1024x682.jpg 1024w, https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2023/05/Blog-Image-105.jpg 1733w",{"height":850,"width":851,"filePath":883},"/wp-content/uploads/2023/05/Blog-Image-105.jpg",{"id":885,"title":347,"uri":886,"excerpt":887,"featuredImage":888},"cG9zdDoyNDc1","/blog/payday-loans-alternatives/","\u003Cp>We have all been there—an unexpected bill shows up, payday feels like it is a million years away, and you are already trying to find relief through debt solutions in Canada to help tackle your load. You may be wondering how you are going to make it through the week without everything falling apart. Enter […]\u003C/p>\n",{"node":889},{"sourceUrl":890,"altText":37,"srcSet":891,"sizes":848,"mediaDetails":892},"https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50.jpg","https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50-1024x682.jpg 1024w, https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2018/08/Blog-Image-50.jpg 1733w",{"height":850,"width":851,"filePath":893},"/wp-content/uploads/2018/08/Blog-Image-50.jpg",{"id":895,"title":357,"uri":896,"excerpt":897,"featuredImage":898},"cG9zdDoyNTAx","/blog/personal-loan-during-consumer-proposal-canada/","\u003Cp>We recently filed a Consumer Proposal (CP) for a gentleman who had a sizable amount of debt, mostly because of his failed business. This man was dealing with a combination of credit card debt, CRA (Canada Revenue Agency) tax and HST debt and a credit union loan taken out through the business he had owned, […]\u003C/p>\n",{"node":899},{"sourceUrl":900,"altText":37,"srcSet":901,"sizes":848,"mediaDetails":902},"https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32.jpg","https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32-300x200.jpg 300w, https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32-1024x683.jpg 1024w, https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32-768x512.jpg 768w, https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32-1536x1024.jpg 1536w, https://www.farber.ca/wp-content/uploads/2015/02/Blog-Image-32.jpg 1732w",{"height":850,"width":872,"filePath":903},"/wp-content/uploads/2015/02/Blog-Image-32.jpg"]