For many residents, the most trying aspect of their financial difficulty in Lethbridge is the harassing phone calls and letters from creditors. Financial difficulty begins with troubles meeting all of your current obligations on time. Whether due to loss or reduction of income or some medical emergency, the troubles begin when your total monthly bills are more than your income.
We hear tales from many of the clients we see in our offices about how they began to use credit cards to pay bills and resorted to payday loans along the way to continue to stay afloat from one month to the next. Along the way, some bills have been ignored for a month or two and then the harassment begins.
The harassment includes threats of legal action but creditors are reluctant to make good on those threats, since it is a costly process. But eventually they do and a notice of an impending wage garnishment drives many frightened Lethbridge residents into our offices. They come in convinced the only option they have to get out of the financial difficulty in Lethbridge in which they find themselves is personal bankruptcy.
But we have another solution – a Consumer Proposal – that for many Lethbridge residents is a better choice. With a consumer proposal, you pay back less than the total amount of unsecured debt you owe and you get to keep your assets. If you owe $100,000, you might end up repaying only $50,000 or even $40,000 of that total.
To qualify for a proposal you have to have a stable source of income high enough to allow you to make affordable monthly debt repayments that go towards paying off the reduced amount of your debt. Licensed bankruptcy trustees document both your need for a proposal and your ability to make the payments specified. Creditors have a chance to vote to accept or reject the proposal and if a majority agrees, all creditors are legally bound to accept.
What that means for you is if your financial difficulty in Lethbridge has reached the point of wage garnishment, a successful Consumer Proposal will stop the garnishment and restore your wages. If you are getting harassing calls and letters, they will stop as well. What’s more, as long as you continue to make the agreed upon monthly debt repayments, none of your creditors can contact you in any way.
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