By Jasmin Brown - Licensed Insolvency Trustee BDO First Call Debt

BDO First Call Debt Solutions

Are you ready to deal with your debt? Speak to a Licensed Insolvency Trustee

Aug 2, 2019 | 11:23 AM

Did you have a plan to pay down debt but lost momentum at some point?

Are you familiar with all your debt repayment options?

Now is a good time of year to get re-acquainted with your financial goals. Learning something new and seeking the help of a qualified debt professional will not only help you resolve your debt, it will relieve a lot of the stress associated with dealing with ongoing debt.

High debt equals high stress

You might be surprised at how many Canadians are feeling overwhelmed by their debt — one-in-four, according to our 2018 Affordability Index Report. Some of those who are feeling it the most include adults in their 20s and 30s, parents raising children and homeowners paying off a mortgage.

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What is worrisome is that Canadians who say they are overwhelmed by their debt also admit they don’t know what steps to take to resolve it.

So let’s shed some light on the subject of debt relief.

What is the role of a Licensed Insolvency Trustee?

Whether your debt load has become insurmountable or you are just beginning to experience financial difficulties, meeting with a Licensed Insolvency Trustee (LIT) is a good first step towards finding a solution. During your initial no-cost, no-obligation consultation with an LIT, you can explain your situation and the LIT will review your finances. She or he will then explain all viable debt solutions in detail.

What are some of my debt relief options?

An LIT will discuss informal options, including budgeting, debt repayment strategies, debt consolidation loans and other debt management solutions. You will also learn what happens when you file a consumer proposal or bankruptcy, which are both formal, legal solutions. LITs are the only debt professionals qualified and authorized to assist you with these formal options.

You can learn more about a consumer proposal and bankruptcy on the BDO First Call Debt Solutions website or from the Office of the Superintendent of Bankruptcy.

What if I need a formal debt solution?

Sometimes, either a consumer proposal or bankruptcy is the best option for dealing with your debt. The good news is that an LIT will guide you through each step of the process, providing credit counselling, sound advice and emotional support to help you get a fresh start financially.

A consumer proposal has increasingly become a popular alternative to bankruptcy because it allows you to repay a fraction of your debt over a specified period of time while allowing you to keep all of your assets.

Bankruptcy may require you to surrender some assets in order to repay your creditors but, contrary to popular misconceptions, you will not lose everything. Every province has a specific list of exemptions that details what assets and equity you will be allowed to keep. In Saskatchewan, a lot of property is protected.

Also, when you file either a consumer proposal or bankruptcy, harassing calls from creditors and collections agencies, wage garnishments and additional interest charges will end.

Whatever your situation, it is helpful to do a bit of research before you speak to an LIT. Use our online debt repayment calculator to compare your options — it can help put your mind at ease as you look for a solution that is right for your unique circumstances.