Compare Debt Relief Options

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What’s important is getting you out of debt.
Let us help you decide what the right choice is for you.

What’s the right choice for me?

Debt SettlementConsumer ProposalBankruptcy
Minimum total debt load must be more than $7,500, with no individual account being less than $500 or more than $10,000. There is no limit on the maximum amount of unsecured debt that can be settled.Maximum amount of unsecured debt must be less than $250,000.There is no limit on the size of the debt load.
Available to individuals or companies.Available only to individualsAvailable to individuals or companies
Since this is an informal process, and nothing is filed with the Federal Government, there is no automatic stay of proceedings. Creditors may contact you and may initiate legal proceedings against you for collecting on the unpaid debts. However, all calls and correspondence from your creditors can be directed to Rabideau Debt Law, your legal representative.Once electronically filed with the Federal Government, protection from your creditors is in place immediately. Creditors notified within 5 business days.Once electronically filed with the Federal Government, protection from your creditors is in place immediately. Creditors notified within 5 business days
Since this is an informal process your creditors are not required to accept a settlement on your behalf, however, they normally do because they want to get paid.Once filed, unsecured creditors have 45 days to vote for or against the proposal or put forward a counter-offer. If approved by the majority of creditors the Proposal gains court approval 15 days later.Once filed, creditors cannot stop the process. No voting required. A creditor can request an examination of the Bankrupt under certain circumstances.
Since this is an informal process, there is no Meeting of Creditors.Meeting of Creditors called if 25% in value (or more) of creditors request one. A meeting of creditors will be held within 21 days after being called.Meeting of Creditors very rare. Only called in extraneous circumstances
The settlement amount is based on negotiations between Rabideau Debt Law and your creditors. We have been able to settle certain accounts for as low as 10% of the outstanding amount; however, most settlements are normally a little more generous than the amount the creditor would receive if you filed a consumer proposal.The amount offered in the proposal must be more generous than the amount the creditors would receive in a bankruptcyPayments based on (a) household income and (b) value of realizable assets
No surplus income involved with Debt SettlementsSurplus income only calculated at the time paperwork is signed (Once proposal is filed, surplus income is no longer an issue)Surplus income tracked throughout the bankruptcy (if excess Surplus Income, then 50% must be contributed to the estate during bankruptcy)
No mandatory counseling sessions with Debt Settlements.2 mandatory counseling sessions must be attended during the Consumer Proposal (the first within 60 days, the second within 210 days)2 mandatory counseling sessions must be attended during the Bankruptcy (the first within 60 days, the second within 210 days)
Not ApplicableNot ApplicableMonthly income statements required
Tax refunds go to the debtor. Does not affect Income Tax returns.Tax refunds go to the debtorTax refunds for calendar year turned over to creditors
GST/HST refunds go to the debtor.GST/HST refunds go to the debtor.GST refunds turned over to creditors
Most settlement plans are 2-4 years in duration depending on the amount of debt outstanding. Meaning the greater the debt amount the longer the term of the Plan.Proposal can be 1-5 years. Paying down the proposal earlier is recommended and welcomed.Generally, first time bankrupts with no surplus income are in bankruptcy for 9 months. Second-time bankrupts, and those with surplus income, are seeing their bankruptcy last 21 to 36 months.
Debts are settled as the amount of savings in the trust account accumulates. There is no requirement to continue in the plan if you do not wish to do such. There is no fee for cancelling your plan.If three payments are missed then the Consumer Proposal is considered “annulled” , the protection is immediately lifted and the creditors have the legal right to pursue the amounts owing to them.Bankruptcy payments are required to be completed in full before a discharge is issued by the Trustee
Paying more into the Plan is ideal and will allow for debts to be settled more quickly. There are no penalties, no interest and no additional fees for paying more into the Plan.Paying down the Proposal earlier is the ideal solution – no penalties and no interestBankruptcy payments can be paid down earlier however this would not shorten the duration of your bankruptcy and does not provide you with an earlier discharge.
Credit rating rises immediately after each settlement is paid out and reported to the credit reporting agency.Credit rating rises to R1 three years following completion.Credit rating rises to R1 approximately six years following completion.