Unfreeze Bank Accounts With a Consumer Proposal or Bankruptcy
As the cost of living in Canada rises, our wages can often be slow to catch up with the rate of inflation.
It can feel as though, no matter how hard we try to manage our finances, we’re taking one step forward and two steps back every year.
Although wages began to rise last year, who knows how the current climate of economic uncertainty will affect our finances in the years to come?
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The upshot of this is that debt is a fact of life for many hard-working Canadians.
And as our debts mount, they can get harder and harder to keep under control.
What’s more, some debts (such as tax money owed to the CRA) cannot be subjected to a standard debt management plan.
If you owe money to the CRA, they may extract it from future wages via garnishment or even freeze assets held in your bank accounts.
If this happens, you will not be granted access to your assets until the debt has been repaid.
This doesn’t just apply to the CRA either.
Other creditors can take legal action to seize funds held in your bank accounts.
The good news is that you are not without options.
If your creditors are not amenable to a debt management plan, you can still take action.
Our Bankruptcy and Consumer Proposal services offer you a legally enforceable way to ensure that your creditors work with you to manage your debt and restore access to your bank accounts.
What is a Consumer Proposal?
If your debts to the CRA or any other creditor exceed your capacity to realistically pay back, you are what is known as insolvent.
You may have heard that the only answer to insolvency is Personal Bankruptcy.
Yet, while many Canadians use this as a means of getting a fresh start, by no means is it the only tool at your disposal.
Many Canadians find that a Consumer Proposal is a helpful alternative to Bankruptcy.
A Consumer Proposal is halfway between a standard debt management plan and a Personal Bankruptcy.
A licensed Proposal Administrator takes a close look at your finances and works with you to put together a proposal that they think your creditor(s) will find acceptable.
It’s important to note that not all of your creditors have to agree to the proposal to make it legally binding.
If a 51% majority agree to the terms of your Consumer Proposal, all of your creditors are obliged to agree to it.
While your debt is not written off entirely (as it may be when declaring bankruptcy), it will almost certainly be reduced.
What’s more, any interest, fees and charges will be frozen.
So your monthly payments go towards paying down your principal, rather than being wasted on interest.
Bankruptcy: A new beginning
Those unfamiliar with Personal Bankruptcy may see it as the end of their financial lives.
But the truth is that Bankruptcy is a new beginning.
The financial fresh start that so many Canadians deserve.
Bankruptcy is the fastest way to a fresh start and rebuilding your credit from scratch.
It will usually involve all or most of your debt being written off and the majority of cases don’t even go to court.
As long as you fulfil your obligations within the first 9 months of declaring bankruptcy, you will receive an automatic discharge.
There are many logistical and psychological reasons why bankruptcy may be the best option for you.
You can get back to having disposable income once again, and pay more into your savings.
Part of your obligations when filing for Bankruptcy includes the completion of two mandatory Credit Counselling sessions.
These will help you to identify the circumstances that allowed your debts to spiral out of control and encourage you to build a personal infrastructure for better money management.
While a bankruptcy will stay on your record for around 6 years (longer if it’s not your first), it imbues you with the skills to prevent you from relying on credit.
How Licensed Insolvency Trustees can help
Whether you decide that Personal Bankruptcy or a Consumer Proposal is the best option for you, you will need the aid of a Licenced trustee.
Click Here to find one near you.
These specially trained and highly knowledgeable professionals can help by advising you on which debt relief options are available.
They can act as a Proposal Administrator if you decide to pursue a Consumer Proposal or help you to meet your obligations for a Personal Bankruptcy and help you avoid going to court.
In either case, the net results are:
Regain access to your funds
Whichever option you choose, your creditors are legally obliged to work with you rather than against you to manage your debt.
This means that any freezes placed on your bank accounts and wage garnishment come to an end.
So you have more money of your own to manage every month.
Stop wasting money on interest and charges
Interest, fees and charges can prolong your debts and lead to new debts piling on top of old ones.
This makes it easier for your debt to spiral out of control.
With the help of a Licensed Insolvency Trustee you can pay down your principal instead of wasting your hard-earned money on interest and fees.
Stop the stress and anxiety associated with debt
The benefits of reaching out to a Trustee go beyond the financial and logistical.
You are also saved the stress, the sleepless nights and the anxiety that come with debts that have spiralled out of control.
All while gaining the confidence to better manage your money going forward.
Frozen bank account? Garnished wages? We’re here for you
Don’t let garnished wages or a frozen account stop you from living your life a moment longer.
Call us today at (877)879-4770 to arrange a risk-free, zero-obligation and 100% confidential callback.
Since 1999 we’ve helped over 100,000 Canadians just like you to take control of their financial lives and unshackle themselves from their debts.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?