Debt Solutions – Frequently Asked Questions
What options are available to me to solve my financial debt problems?
There are a number of things that must be considered when choosing a solution, which is why “in person” interviews are always stressed upon. Some of your options when dealing with debt are: negotiation with your creditors, consolidating your debts into one loan, refinancing your home, reducing your debts via consumer proposal, or filing bankruptcy.
How does Consumer Proposal impact my credit rating and future ability to borrow?
The consumer proposal stays on your credit file for 6 years after your settlement agreement has been fulfilled. Your credit score rating is affected but is related to the amount of debt charge off. In many cases people have been able to rebuild their credit 2-3 years after the date of filing.
How does bankruptcy impact my credit rating and future ability to borrow?
The record of bankruptcy will remain in your credit history for 7 years after the discharge date. Upon filing, in simple scenarios, the discharge process takes nine months. However, in the cases where the client is employed and has substantial earning capability, the discharge process can be prolonged to 24 months or more. Generally few years are enough to rebuild your credit history.
Can my Immigration Status be affected by Insolvency?
The immigration proceedings can be affected when choosing to file for Bankruptcy, and your landed immigrant application process maybe prolonged. Some of your privileges can be affected as well, such as Sponsorship. Please contact Canada Immigration for further clarification.
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