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Difference between revisions of "Dealing with Debt (10:V)"
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Desy Wahyuni (talk | contribs) m (Desy moved page Dealing with Debt (10:IV) to Dealing with Debt (10:V): 2016 revision) |
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Information on how to deal with debt collectors and collection agencies and harassment can be found on the Clicklaw website or through Consumer Protection BC online at: http://www.consumerprotectionbc.ca. | Information on how to deal with debt collectors and collection agencies and harassment can be found on the Clicklaw website or through Consumer Protection BC online at: http://www.consumerprotectionbc.ca. | ||
The Office of the Superintendent of Bankruptcy in Canada, an agency of Industry Canada, assists debtors by providing them with many useful online resources such as “Dealing with Debt: A Consumer’s Guide” and “Debtor’s Frequently Asked Questions”. A full directory of licensed trustees in bankruptcy is available on their website: http://www.ic.gc.ca/ | The Office of the Superintendent of Bankruptcy in Canada, an agency of Industry Canada, assists debtors by providing them with many useful online resources such as “Dealing with Debt: A Consumer’s Guide” and “Debtor’s Frequently Asked Questions”. A full directory of licensed trustees in bankruptcy is available on their website: http://www.ic.gc.ca/app/osb/tds/search.html?lang=eng. A licensed trustee in bankruptcy will provide a free confidential assessment of your financial affairs and advise you of the merits and consequences of filing a consumer proposal or bankruptcy. | ||
For further information the Office of the Superintendent of Bankruptcy can be contacted at: | For further information the Office of the Superintendent of Bankruptcy can be contacted at: | ||
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| online = [http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home Website] | | online = [http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home Website] | ||
}} | }} | ||
Also refer to section F below, ''Settlements''. | |||
== C. Communicating with Creditors when Unable to Make Contractual Payments == | == C. Communicating with Creditors when Unable to Make Contractual Payments == | ||
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When someone has some ability to repay their debts, but is unable to meet the minimum payment requirements of their creditors, contact the Credit Counselling Society for help determining if the Debt Management Program (DMP) at the Society might be an option. This is an agreement between a debtor, to make set, reduced monthly payments, and their creditors, who in return agree to accept reduced payments and who often suspend or reduce ongoing interest charges. A client agrees not to incur further debt while on the program. If a debtor defaults from the program, creditors may proceed with any and all remedies available to them. The debtor should contact the Credit Counselling Society for more information at 1-888-527-8999. | When someone has some ability to repay their debts, but is unable to meet the minimum payment requirements of their creditors, contact the Credit Counselling Society for help determining if the Debt Management Program (DMP) at the Society might be an option. This is an agreement between a debtor, to make set, reduced monthly payments, and their creditors, who in return agree to accept reduced payments and who often suspend or reduce ongoing interest charges. A client agrees not to incur further debt while on the program. If a debtor defaults from the program, creditors may proceed with any and all remedies available to them. The debtor should contact the Credit Counselling Society for more information at 1-888-527-8999. | ||
'''NOTE:''' Though non-profit, the Credit Counselling Society does charge a small fee to | '''NOTE:''' Though non-profit, the Credit Counselling Society does charge a small fee to administer the Debt Management Program (DMP). While counselling is free, CCS charges a one time setup fee of no more than the average monthly payment to creditors to a maximum of $75 upon entering the DMP. Once a debtor has entered intot he program and begins making payments, and only upon written acceptance by creditors, CCS charges 10% of a debtor's deposit to a maximum of $75 per month. CCS will consider reducing or waiving fees where they would become a barrier to debtors needing the help of a DMP. | ||
== F. Settlements == | == F. Settlements == | ||
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== H. Services a Trustee Provides Under the Bankruptcy and Insolvency Act == | == H. Services a Trustee Provides Under the Bankruptcy and Insolvency Act == | ||
The first appointment with a | The first appointment with a licensed insolvency trustee in BC is always free. During this appointment, the Trustee should outline the implications and information a consumer needs to consider before taking any action. This is the time to ask questions to understand the process and long term effect on your credit. A Trustee should be willing to take the time to explain everything thoroughly as there is no backing out once someone has signed the documents to assign themselves into bankruptcy. The same limitation does not exist with consumer proposals. '''For more information on how a licensed insolvency trustee helps with debt, refer to the Office of the Superintendent of Bankruptcy video series at''' | ||
http://www.ic.gc.ca/iec/site/bsf-osb.nsf/eng/br03567.html | http://www.ic.gc.ca/iec/site/bsf-osb.nsf/eng/br03567.html | ||