What is a Debt Settlement Agreement

What is a debt settlement agreement, and is it the right choice for you?

Consumers might consider a debt settlement because:

• Lower overall debt: A debt settlement can result in a lower overall debt amount, as the lender may be willing to accept less than the full amount owed.
• Avoid bankruptcy: A debt agreement can be an alternative to bankruptcy, which can have severe long-term consequences on your credit score and finances.
• Stop collection calls: Once a debt settlement agreement is in place, collection calls and letters will stop.

Consumer Proposals are a legal process that allows individuals in Canada who are unable to repay their debts to come to a debt settlement agreement with their creditors.

This process must be done through a licensed insolvency trustee.

Consumer proposals can be a valuable tool for those facing financial difficulty, as it allows for a manageable repayment plan, while working to improve a poor credit score.

Before you enter into a settlement agreement, you should carefully consider your options and the potential consequences.

Here are some things to think about:

• terms of the agreement?
• how long will it take to pay off the debt?
• are you able to make the required payments?
• any potential legal consequences of the agreement?

Only a consumer proposal provides legal protection from creditors as a debt settlement.

Consumer proposal can be a good alternative, but it is a legal process that must be done through a licensed insolvency trustee.

If you’re considering a debt settlement, call and speak with us to help you understand your options and make an informed decision.”