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Money Worries?
We're all about a second chance.
Your Options
A. Increase Your Income
To increase the family income, you could consider a second job or a non-working family
member might get a job. You should consider any additional expenses such as childcare,
transportation and wardrobe. Often the second job is after hours so you must also consider
whether the location is served by public transportation after hours.
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B. Credit Counseling
Credit counselors are available to advise you on how to budget your expenses and dealing with
your creditors while you recover from financial difficulties. In most cases they will contact your
creditors and attempt to work out a repayment plan that is satisfactory to both you and your
creditors.
A non-profit community organization is the Credit Counseling Society of British Columbia.
www.ccsbc.org They can be contacted at 1-888-527- 8999 or in the Lower Mainland at 527-
8999
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C. Consolidation Loan
You may be able to borrow from a bank or loan company to pay off all of your creditors. This
would leave you with one monthly payment. Thereafter you should refrain from using your
credit cards and conduct your life on a cash basis only. In this way you will not get into greater
difficulty. You should shop for the best interest rates on the consolidation loan.
Many people in financial difficulty cannot get a consolidation loan through conventional sources.
Frequently, the consolidation loan funds are borrowed from a friend or relative.
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D. Consumer Proposal
A Consumer Proposal is a scheme under the Bankruptcy and Insolvency Act whereby you offer
to pay your creditors something less than 100 cents on the dollar, perhaps as little as 20 cents
on the dollar. No interest is payable. If the majority of the creditors agree to your proposal, it is
binding on all of your creditors. The reason that they would accept something less that 100
cents on the dollar is that your only remaining option would appear to be bankruptcy, where they
might recover even less.
A Consumer Proposal is only available to debtors who owe, exclusive of the mortgage on their
principal residence, less than $250,000.
For further information contact MacKayCo.
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E. Ordinary Proposal
An Ordinary Proposal referred to simply as Proposal, is similar to a Consumer Proposal but
applies to debtors who owe in excess of $250,000. Proposals are often filed by Corporations,
individuals carrying on business and professionals such as Architects, Doctors, Dentists,
Accountants and Lawyers. You offer to pay your creditors something more than they would
receive in a bankruptcy, but less than payment in full. Eatons filed a Proposal, which ultimately
led to its liquidation.
For further information, refer to Commercial Proposals under the Commercial Insolvency tab or contact MacKayCo.
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F. Bankruptcy
Bankruptcy is a last resort remedy. Once you conclude that you are insolvent and cannot do a
Proposal of any sort, then bankruptcy is available to you. In a bankruptcy you assign your
assets, that are surplus to normal living requirements, to the Trustee for the benefit of your
creditors. If you have no assets that are surplus to your living requirements then you do not
give up any assets. Creditors must deal with the Trustee; they no longer deal with you. You are
required to pay surplus income to the Trustee for the benefit of your creditors. This continues
until you receive your discharge from bankruptcy, usually in 9 to 21 months, but sometimes
longer.
For further information contact MacKayCo.
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II. Starting the Process
MacKayCo administer Proposals and Bankruptcies. We will meet with
you and advise you of your options including Credit Counseling.
In Order to advise you in a meaningful way, we ask you to complete an application form prior to
meeting with us. Click here for application form.
If the matter is urgent, if you need immediate answers due to unbearable stress, do not
hesitate to call us in advance of completing an application. Our staff will be pleased to
answer your questions in a caring way. You need not be embarrassed about your
circumstances. We are here to help honest people who wish to relieve their stress and
re-establish their credit. Click here for phone numbers and addresses.
We're all about a second chance.
For more information, check our Frequently Asked Questions section.
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