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Serving Canadians in Select Provinces
Avoid Bankruptcy – Get Debt Free

Why Choose GEM Debt Law?

why choose gem debt law

Because Consumer Proposal could be WRONG for You. Consumer Proposal is NOT the right debt solution for everyone. Here are some reasons why…

Your income is either too high and/or you have several income streams (i.e. OAS, alimony, a second job, etc.)

This can include investments, a pension fund, even a newer vehicle with a low financing balance.

There’s too much equity since you have paid down a portion of the mortgage balance, and/or property values in your area increased.

i.e. spouse or other family members, who are not willing or able to enter into the Consumer Proposal with you.

In other words, you can comfortably pay your debts and that’s obvious by looking at your financial statements.

i.e. the banks, the lenders, and the Trustees’ office. Consumer Proposal requires providing proof of hardship to your creditors, including extensive financial disclosure, which is mandatory by law. It must be presented to ALL your creditors.

Since a Consumer Proposal is a voting system, in which the creditor is given a vote per dollar owing, then if you bank with just one financial institution, they can vote to reject your preferred terms of payment. Yes, exceptions may exist, whereby a creditor holding the majority of votes accepts minimal payment terms from you. However, this often requires significant analysis of your finances, possible restructuring in which you must make some major changes to your life, as well as tough advocacy on your behalf, i.e. playing hardball with your creditor. FYI, the Trustee may not mention any of this to you, or help you with this.

This is not a realistic option. A credit card is like a cell phone, it can bring on serious anxiety without one. Are you ready to do without?

How can Debt Settlement be an Alternative?

In Debt Settlement, your finances that pertain to both your personal and professional life are closely guarded behind our fiduciary shield. Creditors will try to get a hold of your tax information, your mortgage or rent contract, your pay stubs, and bank statements, etc., but this type of information can be kept private. GEM resists the collectors’ constant demands for it. Financial disclosure to creditors is carefully controlled in Debt Settlement and very limited.


By contrast, in Consumer Proposal, every detail of your financial information must be disclosed, and this can make people feel very exposed.


In Debt Settlement, negotiations are usually isolated to one single creditor at a time, before moving onto the next. What this means is that your financial life is not displayed to a panel of creditors all at once, like in Consumer Proposal, i.e. Notice of Consumer Proposal sent to all creditors. In fact, a Debt Settlement may be reached without telling the collector much about you at all.


Also, in Debt Settlement, once a reduced settlement of your debt is reached with a creditor, there is a binding agreement to keep its details private, forever. You can move on with your life and the account is noted as settled (or similar notation) on your credit report. This is considered a relatively positive notation to be displayed on your credit report. In three years’, time, the settled account falls off your credit report entirely, never to be seen again.


By contrast, Consumer Proposal stays on your credit report for up to 8 years (and yes, we have said this over and over).

GEM’s fiduciary duty obliges us to serve the clients’ best interests, not the creditors or collectors.