At Debt Victoria, we help you to negotiate directly with your creditors to pay back only a portion of what is owed.

The process allows a debtor and/or their representative to negotiate directly with a creditor to reach a settlement to repay back a portion of what is owed. It allows a consumer to avoid filing a Consumer Proposal or Bankruptcy under the Bankruptcy and Insolvency Act.

It is vital the process is followed correctly and that the proper paperwork is provided and release documents received to ensure a successful outcome of the negotiations.

Informal restructuring is a service that is not widely offered in Canada as there are more risks.

There are a few things that can affect the outcome of the Informal negotiations, but here are some highlights for you to consider:

  • You may be able to pick and choose the debts you negotiate (keep some credit cards)
  • You can continue to be a Director of an incorporated company
  • The debts settled are usually reported as an R7

Additional points to consider about Informal Proposals:

  • Although you are not required to be technically insolvent but do need to demonstrate the inability to repay the debt in full.
  • They will not deal with Canada Revenue Agency debts (personal income tax, GST, HST, or source deductions)
  • They do not deal with secured debts such as mortgage and car loans