Baker Tilly Ottawa Bankruptcy
When circumstances push businesses or individuals into insolvency, filing for bankruptcy becomes inevitable.
Besides the option of filing bankruptcy, in Ottawa, Canada settlement of debt can be sought by the debtor.
Facing severe financial hurdles can be worrisome and prompt the debtor to consider bankruptcy, however, debt settlement is also a viable alternative.
Baker Tilly Ottawa LLP Ottawa, ON Licensed Insolvency Trustee
It was often seen that the amount of debt settlement was 20% less than the debt amount owed. But the payment is always subject to the financial capability of the debtor.
When the debtor chooses the debt settlement option, they are required to pay an upfront one-time negotiated amount to creditors to prohibit them from taking any further action on the debt.
Filing for bankruptcy in Ottawa
Debt settlement is a good option when individuals or businesses residing in Ottawa who are inclined to protect their credit rating.
Filing for bankruptcy and consumer proposal can have an adverse impact on the credit rating of the debtor.
When debt settlement is sought, in addition to an agreement on upfront payment, some terms and conditions are involved.
These terms and conditions may vary as per the province or state rules pertaining to the Bankruptcy and Insolvency Act or BIA.
In Canada, debt settlement can be done informally as well as formally with legal intervention or through a third party.
The process of debt settlement also allows a firm or an individual to pay as per their financial strength and can avoid legal procedures.
In this situation, often creditors express their content with the amount on offer for settlement since if the debtor files for bankruptcy then the legal authority can restrict them from taking any further action.
Ottawa ON K2H 9R4