Chapter 1: Which debt relief solution do you qualify for?

Bromwich+Smith offers two primary debt relief solutions: consumer proposals and bankruptcy. While most people are familiar with the term bankruptcy, a consumer proposal is often the better option. No matter which option is right for you, both require a Licensed Insolvency Trustee – and that’s where Bromwich+Smith can help.  

With a consumer proposal, a trustee negotiates with your creditors to get your debt amount lowered and secure a monthly payment you can live with.

How do you qualify for a consumer proposal?

• Owe at least $1,000 and have total debt less than $250,000* (excluding mortgages and loans on your principal residence) 
  • Or in the case of two people filing, total debt less than $500,000 
• Be insolvent (unable to make debt payments on time or owe more than the value of your assets) 
• Have a connection to Canada (be a resident, or own a business or property in Canada) 
• Have a reliable source of income 
• Have been discharged from any previous consumer proposal

Bankruptcy is a formal discharge of most of your debts through court action. However, this doesn’t mean you don’t have to pay back anything. It should be considered a last resort after options like a consumer proposal have been explored. 

 How do you qualify for bankruptcy?

• Owe at least $1,000 
• Be insolvent (unable to make debt payments on time or owe more than the value of your assets) 
• Have a connection to Canada (be a resident, or own a business or property in Canada) 
• Have been discharged from any previous bankruptcy

To learn more about the process of getting debt relief, click on the next chapter button below to continue reading. Or click the button below to connect with us today—our advisors will review your situation and recommend the best solution for you.