I can’t pay my debts but I don’t want to declare bankruptcy. What other options might be available? There are a number of options available to deal with your creditors. Some of these are formal options legislated under the Bankruptcy and Insolvency Act and some are informal.

Informal Options can include:

   1.  Informal proposal to Creditors: This option works best if you have a smaller amount of debt and just a few creditors to deal with. You would be dealing them on an individual basis and all of the creditors would have to agree to make this option work.

   2.  Consolidation Loan through a bank or finance company: This option will be available only if you can qualify for a loan to consolidate. This can group a number of debts together into one loan with one monthly payment. More detailed information about these informal options can be found in the Alternative Methods for Dealing with Creditors section.

Formal Options include:

   1.  Orderly Payment of Debt (OPD): This is done through the Provincial mediation Board. You will pay back your debt in full with an OPD. An arrangement is made with your creditors that can possibly help to reduce the amount of interest being paid. This option works best if you have available income in your budget to make a monthly payment and a smaller amount of debt. For more information on OPD you can visit: http://www.saskjustice.gov.sk.ca/provmediation/

   2.  Consumer Proposal: In order to qualify for a consumer proposal you must owe less than $250,000 (including all debt other than the mortgage on your principal residence). A proposal to your creditors would typically be for a portion of the debt owing. More detailed information on consumer proposals can be found in the Bankruptcy/Proposal Section under Consumer Proposals.

   3.  Division I Proposal: An individual who does not qualify for a Consumer Proposal (because their debt is more than $250,000) would be eligible to file a Division I Proposal. More detailed information on Division I proposals can be found in the Bankruptcy/Proposal Section under Commercial Proposals.

   4.  Bankruptcy: A bankruptcy is generally the last option that is considered. In some cases it is not realistic to use any of the other options. For example if you do not have room available in your budget to make payments to your creditors over an extended period of time, if you have a very large amount of debt, if your income is unstable, etd. Prior to selecting a bankruptcy as the option we will review all other options, discuss the benefits and consequences of each option and provide you with the information you will need to make an informed decision. More detailed information on Bankruptcy can be found in the Bankruptcy/Proposal Section under Consumer Bankruptcy.

Whatever option is selected you should feel comfortable with the decision that is made. Before you make any decision you should feel that all of your questions have been answered. If you file a bankruptcy or proposal you will be working with your Trustee over an extended period of time. You should feel that you are being treated with respect and can ask questions throughout the process.