FREQUENTLY ASKED QUESTIONS

WHY SHOULD I PAY FOR YOU TO ACT ON MY BEHALF RATHER THAN TAKE A FREE SERVICE?

We are unlike Bankruptcy, Consumer Proposal and Credit Counselling plans offered by Trustees and Credit Counsellors. Even though you are paying for the service a Trustee is a court appointed agent acting in the best interest of the creditors- not you! 

​

Like any service organization, the capacity, experience and capability of the 'free'  sector can be extremely varied. However, one fact that makes us uneasy with the PURPORTED impartiality of the majority of these so-called non-profit companies and organizations is that much of their funding come via "sponsorship" from banks, loan granters, and other financial institutions. Our experts are committed to acting solely in your interest and have no obligations to the banks or other financial institutions. 

WHY SHOULDN'T I GO DIRECTLY TO A BANKRUPTCY TRUSTEE?

BEWARE: In Canada, it is against the law for a Bankruptcy Trustee to give you any advice with respect to the protection of your assets. The law clearly sets out that the trustee's obligations are to represent your creditors' interest only. Most trustee's struggle with this issue trying to set a fair, and equitable payment that the debtor can afford while still trying to recover the most money for the benefit of the creditors. 

​

When you choose Santee Gate Credit Counselling, our job is to represent you exclusively. We ensure your assets are protected, to the fullest extent possible, and that your repayment arrangement is fair, equitable, and based on your ability to repay. 

WHAT IS A CONSUMER PROPOSAL?

A proposal is a new arrangement with your creditors to pay an amount you can afford. The proposal is a legal process under the Bankruptcy and Insolvency Act that protects you from harassment and creditor actions. 

​

A consumer proposal applies where your debts, excluding the mortgage on your principal residence does not exceed $250 000. We assist you to make an offer to your unsecured creditors (example credit card companies) that is based on your income and living expenses. If half the creditors by amount owed, who vote, accept your payment plan, all the creditors are forced to accept the new plan. When you complete the payments over the agreed time period, the claims of your creditors are eliminated. Your secured creditors (car loans, mortgage on your house) are not part of the proposal unless you want them to be. However, in such a situation you would have to give up the asset. 

​

The court must approve the proposal to make it binding on all unsecured creditors. The offer to the creditors is usually in the form of monthly payments over a time period of one or three years (maximum five) and the proposed payments will never be more than your ability to handle them. 

​

Should your debts exceed $250 000, you are still able to do a proposal but it is not called a consumer proposal. Our trained experts will explain this in more detail.

WHY WOULD I CHOOSE A CONSUMER PROPOSAL?

• Under a proposal interest charges stop

• Legal actions will cease

• There will be no more harassing phone calls

• You don't have to give up assets such as automobiles or your home

I HAVE BEEN ADVISED TO SEE IF I CAN GET A LOAN, AND CONSOLIDATE ALL OF MY DEBTS INTO ONE AFFORDABLE PAYMENT. IS THIS A GOOD IDEA?

In some cases this may be a viable solution, although we would generally caution against turning unsecured debt (eg. credit cards, or lines of credit) into a secured debt such as a home equity loan. This places your home at risk if you fail to meet your payments. It is advisable to first get professional advice on all alternatives that are available to you.