Instead of declaring bankruptcy in Thunder Bay you can ask your creditors for a reduction in the debts or a deferral of payment. This is accomplished by filing a Proposal under the Bankruptcy and Insolvency Act, and is available both to individuals or corporations that are having financial difficulty.
Consumer Proposals are different than bankruptcy in that you can remain in possession of your assets and, provided the required majority of your creditors agree with your Proposal, there will be no resulting bankruptcy. With a Proposal, no further interest charges accumulate and you can negotiate to repay only a portion of the debt you owe. The laws governing proposals under the Bankruptcy & Insolvency Act allow extensive flexibility in payment terms and the treatment of assets. Normally though, the Proposal must offer the creditors more than what they would receive in bankruptcy. A Proposal may be the best option for you if you can afford to make payments to your creditors. For corporations as well, if the business itself is viable and can afford some future payments to settle its outstanding debts, then that option may be better than a bankruptcy.
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