Personal Debt Solutions

There is a possible way out of debt that does not involve bankruptcy. It is called a Consumer Proposal, although many call it peace of mind. A Consumer Proposal is a negotiated settlement between you and your creditors. It is legally binding and subject to a specific process and conditions. A Consumer Proposal is available to individuals whose total debts do not exceed $250,000.00 (excluding a mortgage on a personal residence). You can make a Consumer Proposal to your creditors to reduce the amount of your debts, extend the amount of time you have to pay off the debt, or provide a combination of both.

The advantages of a Consumer Proposal are that any actions against you by the unsecured creditors are stopped; you retain all your assets, and ultimately, avoid bankruptcy.

At Crowe Soberman Inc., we have a group of highly-qualified professionals who can help you first decide if a Consumer Proposal is the answer for you, and then guide you through the process. Following is an overview of the steps we take for you:

• Create the Proposal based on our discussions of your ability to pay
• File the Proposal with the appropriate authorities, making it legally binding
• Negotiate with your creditors so that you don’t have to
• Receive your Proposal payments and disburse them to your creditors as agreed
• Provide you with credit counseling to help you move on with your life
• Oversee the Proposal until its completion, ensuring that all parties honour their agreements
• On completion of the terms of the Proposal, file the documents that will release you from all debt covered by the Proposal 

If your financial situation is beyond your control, you are not alone. Crowe Soberman Inc. has helped many others in your situation, and we can help you too!

A Division I Proposal, also known as a Commercial Proposal, is available to both individuals and businesses. It is a compromise between the debtor and their creditors. When the Proposal is approved by the creditors and the Court, it becomes legally binding. If you owe an amount greater than $250,000, you are eligible to file a Division 1 Proposal.

You can file a Division I Proposal to your creditors to compromise your debts (excluding a mortgage on a personal residence). The Division 1 Proposal will allow you to reduce the amount of your debts with the flexibility of monthly affordable payments over a period of time, generally five (5) years.,

The advantages of a Division I Proposal are that all actions against you by your unsecured creditors are stopped, you get to keep all your assets and you can solve your financial problems without filing bankruptcy.

If your financial situation is beyond your control, you are not alone. Crowe Soberman Inc. has helped others in your situation, and we can help you too.

For many individuals, the only option available to them to solve their unmanageable debt load is to file a personal bankruptcy. For some, filing for personal bankruptcy carries a stigma of embarrassment and failure, but the truth is that many situations are the result of unfortunate circumstances, such as illness, loss of employment, marital breakdown or the passing of a loved one. Bankruptcy laws in Canada were established to allow "an honest but unfortunate debtor" a fresh start and a chance to rebuild their personal finances.

After you declare bankruptcy, you are no longer required to pay unsecured creditors. The Trustee will deal directly with your creditors, including stopping any legal actions they may have started against you, such as wage garnishments. While in bankruptcy you will be required to perform certain duties which the Trustee will explain to you. As a first time bankrupt you may be eligible to be discharged and debt free as early as nine (9) months from the date of bankruptcy.

If we determine together that the only solution available to you is to declare bankruptcy, our Trustees in Bankruptcy and Administrators can assist you in your formal filing.

There are other informal options available to individuals to get their financial situation under control, without filing for bankruptcy or offering a proposal to their creditors.

Budgeting Assistance

If you are having difficulties setting and balancing your budget, we can help! We will take the time to review and assess your living expenses and develop a strategy for you to keep a positive cash flow going forward.

Creditor Negotiations & Informal Proposals

If you find the idea of contacting your creditors daunting, let us do it for you. We will negotiate with some or all of your creditors to reduce your payments, interest rates, or time to repay the debts.

Credit Counselling

If you are continually going into your overdraft, using one credit card to pay off another, or exceeding your credit limits regularly, we can aid in breaking those patterns through credit counselling. Our informative credit counselling sessions are an opportunity to give individuals and families the tools to manage their credit and debt in the future, so they will not experience greater turmoil down the road.