You feel like you have gone past the point of no return, and there is no way for you to ever get your debts under control again. You still have options. Licensed Insolvency Trustees (LIT) are the only professionals that administer federally regulated debt relief options and can get you back on track.
You could file a Consumer Proposal
If you are an individual and your total debts do not exceed $250,000 (not including debts such as a mortgage secured by your principal residence), a consumer proposal might be the right choice for you.
You could file for bankruptcy
Life happens. Sometimes, we need a second chance; a fresh start. Bankruptcy is a formal process in which you sign over all of your assets—except those exempt by law—to a Licensed Insolvency Trustee (LIT), who then sells off those assets to satisfy outstanding debts. If you declare bankruptcy, you will stop making payments to your creditors; any legal actions by your creditors against you are stopped; and actions by your creditors to garnish (seize) your salary or wages are also stopped. Once you are discharged from bankruptcy, you will be released from the legal obligation to repay most of your debts, with the exception of specific debts excluded by law. An LIT can tell you if bankruptcy is the right option for you.
Debt can be difficult to deal with
If you’re in crisis or feeling overwhelmed, reach out for help: Crisis Services Canada 1-833-456-4566 or text 45645
Take the first step
If you are considering a consumer proposal or a bankruptcy, your first step should be to meet with a Licensed Insolvency Trustee (LIT). An LIT will evaluate your financial situation and discuss various options with you. Your first meeting with an LIT may be free, so those facing debt problems can get advice with no commitment and no upfront fees. LIT s are the only professionals authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt (such as consumer proposals and bankruptcies).
You don’t need to pay anyone to access an LIT and no one else needs to represent you. If it is determined that a consumer proposal or bankruptcy is appropriate, the fees charged by an LIT are regulated by the federal government, ensuring transparency, consistency and fairness.
You're feeling overwhelmed and need help, but you are still making your debt payments.
You would like to try other options before filing a consumer proposal or filing for bankruptcy.