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Reduce Debt Up To 80%

September 29, 2021

Advertisements are all over social mainstream media outlets speaking to “government programmes” that will “reduce your debt by up to 80%”.  Ironically, many of the companies making this statement are not licensed by the government and cannot do anything but refer the respondent (usually for a fee) to a Licensed Insolvency Trustee (“LIT”).

When we analyzed the Consumer Proposals that have been filed through our office the median (middle) percentage repaid through the proposals was 15% of outstanding debts while the mean (average of all values) was 26% of the face value of debt.  We have ad proposals that require payment of 100% of the debt plus- LIT fees and some that pay 5% +/-.

At the end of the day there are two important takeaways: 

  1. Only a Licensed Insolvency Trustee can help you; and
  2. There is no standard formula for proposal acceptance by creditors.

Call us at 519-646-2222 to see if a proposal is the right option for you and your family.