Clear Debt Solutions

A debt management plan is a service we provide - giving you a simplified payment plan for your debts.

You should be aware that  some counsellors call organizations. Do you believe that ?

No one works for free - they are paid be the creditors more for the creditor than for you.
This will only lead to more financial distress.

What can Clear Debt Solutions do for you?

First, a credit counsellor meets with you to assess your situation, help you make a budget,

and give you some advice about dealing with your money problems.
This can be a great help if money management skills will be enough to get your finances in order.

Then, if your debts are so large that you can’t handle them on your own through budgeting  and
expense reduction, we will work out a debt management plan with your unsecured creditors.

How does a debt management plan deal with my debts?

In a debt management plan:
* You must usually repay your debt, although creditors may forgive some debts.
* Your creditors agree to take payments over a period of time.
* Your creditors, in many cases, agree to reducing or eliminating the interest on your debt.

Is a debt management plan right for me?

WHO DO I TRUST WITH MY DEBTS?  WHO WORKS IN MY BEST INTEREST?

First of all you ought to know how different Organizations work.
Anyone not paid by you obviously gets paid by the creditor and their loyalty lies to them- NOT YOU.
Ask yourself this logical question before getting into any agreement - No matter where you read, heard or said - it is common sense that “nothing is free".
The trustee or any non-profit organization or collection companies don’t work for you.
They are hired by the creditor to get the "maximum out of you" they work on a percentage ( about 20%) on the collection.
The more they collect from you, the more they get.  

Who do you think they work for?  Themselves, they are independent business people who are only interested in the getting the "best buck for the bang".

An analogy is the process of selling you house - the listing agent tries to get the best price for the seller as he gets a % of the final sale.

We are licensed by the National Insolvency Council and work in accordance to the BIA act. Please visit http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home issued by Industry Canada for more details.

We assure you that you are our client not the creditor and work towards getting the best deal for you not the creditor. Check out what our Clients have to say about us and our settlement page for more understanding.

It's the law in Canada that all legal action stops once a bankruptcy or proposal is filed. This does not apply to secured creditors such as banks holding, for example, a lien on a car.

The equity you have accumulated in your house and your cash flow are key factors.

To keep your home you must be able to pay all of your home's equity to your bankruptcy trustee, before the bankruptcy is complete. If you find you have accumulated more equity than you can pay, there are other options that allow you to keep your home such as filing a consumer proposal.  The equity you have accumulated in your house and your cash flow are key factors.

There are standards supplied to the trustee by the Superintendent of Bankruptcy which instructs the trustee to collect funds, for the benefit of creditors, from any earnings above what is reasonable for the number of people in the family and the bankrupt's personal situation. Ref: Surplus Income under “Bankruptcy”

One of the biggest concerns for debtors is how this will affect their spouse. Sometimes people believe that marriage automatically makes their partner responsible for their debt, but this is not the case.

No, If your spouse has not co-signed or guaranteed any of your debts then those debts belong solely to you. For the most part, debts are the debtor’s responsibility alone. Nobody (including a co-worker, friend, family member) can be pursued for the payment. If you are ever told by a collection agency that they will come after your spouse, understand that this is only a scare tactic. 

The only time a collection agency can go after your spouse is if they co-signed or guaranteed the debt.  This process takes your name out of the file but the co-signed is completely responsible if their name appears on the debt.

ALL UNSECURED DEBTS

Credit Cards, Line of Credit, Student Loans, Taxes, Payday Loans, Personal Loans, others

ALL SECURED DEBTS

House, car or any other secured loan
Family Responsibilities- spousal support

You must have tried all options before you decided to get advise from a credit counsellor.Just paying interest has led you to a helpless situation.

A credit report is a snapshot of your credit history. It lists your debts with your creditors. Your creditors send this information on a regular basis to credit reporting agencies to show whether or not you are making your payments on time.

While you are on a debt management program, there will be a note on your credit report to show that you are making regular payments to creditors through a special arrangement with your credit counsellor. During this time, you will usually not have access to more credit.

After you have completed your debt management program, you are legally debt free and receive a “certificate of full performance” and will receive be able to access credit again.

Your credit starts to re-build after your proposal payment.