You Have Options for Getting Out of Debt - Revision history

Drew Jackson: /* Legal advice */

2023-11-07T01:10:18Z

Legal advice

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	:'''People’s Law School'''		:'''People’s Law School'''
	:See more options for free or low-cost legal help.		:See more options for free or low-cost legal help.
	:[https://www.peopleslawschool.ca/options-legal-help/~~?utm_source=beagle~~ Visit website]		:[https://www.peopleslawschool.ca/options-legal-help/ Visit website]

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Drew Jackson: /* Option 2. Negotiate with your creditors */

2023-11-07T01:09:24Z

Option 2. Negotiate with your creditors

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	If you’re having trouble making payments, consider contacting your creditors. Show them the budget you’ve prepared. Make them an offer based on what you can afford. Your creditors may agree to change the terms of your agreement to help you pay.		If you’re having trouble making payments, consider contacting your creditors. Show them the budget you’ve prepared. Make them an offer based on what you can afford. Your creditors may agree to change the terms of your agreement to help you pay.

	We offer step-by-step guidance on negotiating with your creditors. See [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/getting-out-debt~~/negotiating-payment-terms negotiating payment terms].		We offer step-by-step guidance on negotiating with your creditors. See [https://www.peopleslawschool.ca/negotiating-payment-terms/ negotiating payment terms].

	===Option 3. Consolidate your debts===		===Option 3. Consolidate your debts===

Drew Jackson: /* Option 1. Budgeting out of debt */

2023-11-07T01:08:57Z

Option 1. Budgeting out of debt

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	Compare your totals for income and expenses. If you’re spending more than what’s coming in, try to cut back on any non-essential spending. For each expense, ask yourself: do I want this, or do I need it?		Compare your totals for income and expenses. If you’re spending more than what’s coming in, try to cut back on any non-essential spending. For each expense, ask yourself: do I want this, or do I need it?

	We provide more detailed guidance on making a budget. See [https://www.peopleslawschool.ca/~~everyday~~-~~legal~~-~~problems/money~~-debt/~~getting-out-debt/budgeting-out-debt~~ budgeting out of debt].		We provide more detailed guidance on making a budget. See [https://www.peopleslawschool.ca/budgeting-out-of-debt/ budgeting out of debt].

	===Option 2. Negotiate with your creditors===		===Option 2. Negotiate with your creditors===

Drew Jackson: /* Work out the problem */

2023-11-07T01:08:04Z

Work out the problem

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	==Work out the problem==		==Work out the problem==
	~~===Your options===~~
	There are several options for getting out of debt.		There are several options for getting out of debt.

	~~'''Option 1'''. Budgeting out of debt~~		===Option 1. Budgeting out of debt===

	~~'''Option 2'''. Negotiate with your creditors~~

	~~'''Option 3'''. Consolidate your debts~~

	~~'''Option 4'''. Negotiate a debt settlement~~

	~~'''Option 5'''. Make a consumer proposal~~

	~~'''Option 6'''. Declare bankruptcy~~

	~~===More on each option===~~
	====Option 1. Budgeting out of debt====
	To tackle your debts, you need to understand your financial situation. Your first step should be to list your '''assets''' (what you own) and '''debts''' (what you owe).		To tackle your debts, you need to understand your financial situation. Your first step should be to list your '''assets''' (what you own) and '''debts''' (what you owe).

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	We provide more detailed guidance on making a budget. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/getting-out-debt/budgeting-out-debt budgeting out of debt].		We provide more detailed guidance on making a budget. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/getting-out-debt/budgeting-out-debt budgeting out of debt].

	====Option 2. Negotiate with your creditors====		===Option 2. Negotiate with your creditors===
	First, a caution. Have more than two years passed since you made a payment on a debt or the creditor demanded payment? If so, the creditor may have lost their legal right to enforce the debt. You should seek legal advice before contacting the creditor. See [https://www.peopleslawschool.ca/options-legal-help options for legal help].		First, a caution. Have more than two years passed since you made a payment on a debt or the creditor demanded payment? If so, the creditor may have lost their legal right to enforce the debt. You should seek legal advice before contacting the creditor. See [https://www.peopleslawschool.ca/options-legal-help options for legal help].

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	We offer step-by-step guidance on negotiating with your creditors. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/getting-out-debt/negotiating-payment-terms negotiating payment terms].		We offer step-by-step guidance on negotiating with your creditors. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/getting-out-debt/negotiating-payment-terms negotiating payment terms].

	====Option 3. Consolidate your debts====		===Option 3. Consolidate your debts===
	Consolidating your debts means combining them into a single payment. There are three main ways to do this:		Consolidating your debts means combining them into a single payment. There are three main ways to do this:

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	With a '''debt repayment plan''', you set up an account with a credit counselling agency. You deposit a monthly amount into the account. The credit counsellor uses this amount to pay your creditors until your debt is erased.		With a '''debt repayment plan''', you set up an account with a credit counselling agency. You deposit a monthly amount into the account. The credit counsellor uses this amount to pay your creditors until your debt is erased.

	We walk you through each of these options in more detail. See [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/getting-out-debt~~/consolidating-your-debts consolidating your debts].		We walk you through each of these options in more detail. See [https://www.peopleslawschool.ca/consolidating-your-debts/ consolidating your debts].

			===Option 4. Negotiate a debt settlement===

	~~====Option 4. Negotiate a debt settlement====~~
	With a '''debt settlement''', you pay your creditors a lump sum that is less than the full value of what you currently owe. This can range between 20% and 80% of the debt currently owed. (Settlements at the low end of this range are very rare.)		With a '''debt settlement''', you pay your creditors a lump sum that is less than the full value of what you currently owe. This can range between 20% and 80% of the debt currently owed. (Settlements at the low end of this range are very rare.)

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	You can get help with negotiating a debt settlement. Non-profit credit counselling agencies offer these services. (So do for-profit companies, some of which don’t have your best interests at heart. So be careful.)		You can get help with negotiating a debt settlement. Non-profit credit counselling agencies offer these services. (So do for-profit companies, some of which don’t have your best interests at heart. So be careful.)

	We have in-depth information on debt settlements. See [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/getting-out-debt~~/negotiating-debt-settlement negotiating a debt settlement].		We have in-depth information on debt settlements. See [https://www.peopleslawschool.ca/negotiating-debt-settlement/ negotiating a debt settlement].

			===Option 5. Make a consumer proposal===

	~~====Option 5. Make a consumer proposal====~~
	A '''consumer proposal''' is an offer you make to your creditors to settle your debts. If they accept your proposal, you pay them a portion of what you owe and they forgive the rest.		A '''consumer proposal''' is an offer you make to your creditors to settle your debts. If they accept your proposal, you pay them a portion of what you owe and they forgive the rest.

	It’s a formal, legally binding process overseen by a licensed insolvency trustee. It can take up to five years. Some of your assets may need to be sold. We explain the process in detail. See [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/getting-out-debt~~/making-consumer-proposal making a consumer proposal].		It’s a formal, legally binding process overseen by a licensed insolvency trustee. It can take up to five years. Some of your assets may need to be sold. We explain the process in detail. See [https://www.peopleslawschool.ca/making-consumer-proposal/ making a consumer proposal].

			===Option 6. Declare bankruptcy===

	~~====Option 6. Declare bankruptcy====~~
	'''Bankruptcy''' is a legal process where you give up most of your assets to get rid of your debts. Going bankrupt is a long process with serious consequences. It’s the most drastic option for getting out of debt.		'''Bankruptcy''' is a legal process where you give up most of your assets to get rid of your debts. Going bankrupt is a long process with serious consequences. It’s the most drastic option for getting out of debt.

	A licensed insolvency trustee must file an application for you with a government office. The trustee guides you through the process. They sell your assets (except for a few that are exempt) to pay off your creditors. When the process is complete, you’re “discharged” from bankruptcy. [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/getting-out-debt~~/declaring-bankruptcy We walk you through declaring bankruptcy].		A licensed insolvency trustee must file an application for you with a government office. The trustee guides you through the process. They sell your assets (except for a few that are exempt) to pay off your creditors. When the process is complete, you’re “discharged” from bankruptcy. [https://www.peopleslawschool.ca/declaring-bankruptcy/ We walk you through declaring bankruptcy].

	==Who can help==		==Who can help==

Elena Renderos: Elena Renderos moved page When You Can't Pay Your Debts (No. 253) to You Have Options for Getting Out of Debt: change title

2023-10-11T05:35:30Z

Elena Renderos moved page When You Can't Pay Your Debts (No. 253) to You Have Options for Getting Out of Debt: change title

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Elena Renderos: /* Helpful agencies */

2023-10-02T20:44:22Z

Helpful agencies

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	:A non-profit society that helps people better manage their money and debt.		:A non-profit society that helps people better manage their money and debt.
	:Call 1-888-527-8999		:Call 1-888-527-8999
	:[[info@nomoredebts.org~~\|Send an email]]~~		:Email: info@nomoredebts.org
	:[https://www.nomoredebts.org/ Visit website]		:[https://www.nomoredebts.org/ Visit website]

Elena Renderos at 20:43, 2 October 2023

2023-10-02T20:43:27Z

Show changes

Drew Jackson at 22:04, 29 March 2019

2019-03-29T22:04:05Z

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	{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}		{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}
	Being in debt is stressful. Falling behind in your payments can seriously affect your daily life. The good news is there are a number of options for getting out of debt.		Being in debt is stressful. Falling behind in your payments can seriously affect your daily life. The good news is there are a number of options for '''getting out of debt'''.

	==Understand your legal options==		==Understand your legal options==
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Elena Renderos at 08:10, 28 March 2019

2019-03-28T08:10:40Z

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	{{~~Dial~~-~~A-Law Blurb~~}}		{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}

	{{Dial-A-Law TOC\|expanded = ~~credit~~}}
	Being in debt is stressful. Falling behind in your payments can seriously affect your daily life. The good news is there are a number of options for getting out of debt.		Being in debt is stressful. Falling behind in your payments can seriously affect your daily life. The good news is there are a number of options for getting out of debt.

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	~~[updated October 2017]~~

	~~'''The above was last reviewed for legal accuracy by [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan.'''~~

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Drew Jackson: Drew Jackson moved page When You Can't Pay Your Debts (Script 253) to When You Can't Pay Your Debts (No. 253): Aligning title to new website

2019-03-13T01:27:33Z

Drew Jackson moved page When You Can't Pay Your Debts (Script 253) to When You Can't Pay Your Debts (No. 253): Aligning title to new website

← Older revision		Revision as of 01:27, 13 March 2019
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