Solutions for Debt Relief

We will advise your creditors of your situation, explain to them what is happening and why you cannot meet your obligations. After creditors have been contacted we will ask them to make arrangements to reduce your payments, make interest-only payments for a few months, or change the terms of your agreement. We will follow-up with a letter outlining the terms arranged.

Credit Counselling is included in the services Haley & Associates Inc. offer our clients. We can provide advice and guidance on such things as preparing and following a spending plan, planning for future spending and goals, effective credit use and establishing or repairing your credit rating.

We can help deal with financial institutions that offer loans to combine or consolidate your loan debts into one loan, leaving you with one monthly payment. Start with your bank or credit union. If they are unable or unwilling to help, explore finance companies, keeping in mind that they generally charge a higher rate of interest. A consolidation loan should provide a payment that you can manage. Be careful not to incur additional credit while paying back your consolidation loan.

If you own real property you may be able to borrow on the equity and pay off your debts.

In some cases your creditors may accept an extension or settlement of debt. This could be a percentage of the debt paid all at once or over a period of time. An Informal proposal does not have any protection to stop legal action that has been taken against you; however, it may enable you to make different arrangements with each creditor.

Under the Bankruptcy and Insolvency Act, a trustee in bankruptcy can make a consumer proposal to your creditors to reduce the amount of your debts, extend the time you have to pay your debts, or provide some combination of both. Consumer proposals can be paid out all at once or over a period of time, not exceeding five years. Consumer proposals offer you protection against legal action from your creditors. Your creditors must be better off under a consumer proposal than if you go bankrupt. In addition if the majority of your creditors accept the proposal, the rest may have to accept it as well.

Bankruptcy should be a last alternative. Bankruptcy is a legal process performed under the Bankruptcy and Insolvency Act. You turn over all of your assets, except those exempt by law, to a licensed trustee in bankruptcy. This process relieves you of most debts, and protects you from legal action by your creditors.