Negotiation with Creditors
We resolve. You restart.
Negotiating with creditors is a solution for temporary debt problems that avoids provisions of the Bankruptcy and Insolvency Act (BIA). This is an informal proposal in which an agreement is negotiated directly with creditors in order to reimburse what you have borrowed at a level suitable for your capacity to pay.
Negotiating an agreement with your creditors is a good solution which will allow you to solve your financial problems in the short term. However, it may be difficult to use this solution because creditors are under no obligation to accept your informal proposal.
In any case, they will be more inclined to accept an agreement if you have a good credit file, have few debts and stable employment. If you have a good relationship with your creditors, your chance of reaching an agreement with them is better.
If a creditor has not signed a written agreement, only accepting an informal proposal verbally, it can always change its decision and cancel the agreement at any time. For better protection, a written agreement signed by the creditors that mentions each detailed clause is recommended. This document is your only protection in a creditor negotiation.
Negotiating with creditors carries certain risks:
Creditor negotiation may be a viable solution if:
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