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Debt Solutions

If you’re thinking about tackling your debt through a licensed insolvency trustee, Mike Wright & Associates knows what you’re feeling. You’re worried about losing something you own, and you’re worried about how much of your income you’ll have to pay.

The first thing Mike Wright & Associates will do is sit down and have a discussion with you about your situation. There is no time limit on that meeting, which means every possible angle will be discussed and examined, from how much you owe to the resources you have. The benefits will be weighed against the costs to ensure the path to financial recovery is a smooth one.

The two main avenues to getting out of debt are consumer proposal and bankruptcy, although consumer proposals are more prevalent in today’s day and age. If you have a job or steady income, a consumer proposal is usually the best course of action and it’s rare you’ll have to give up something you own. Bankruptcies are more common for those who have low income.

“I meet all of the potential clients myself,” Mike Wright says. “I like to actually get to know the people I’m helping and really understand their problems. It gives them a better result, because they have the person at the top of the pyramid involved from the very beginning. We’re not going to miss important issues.”

Ultimately, Mike Wright & Associates is a neutral party when it comes to debt solutions. Technically, it is an officer of the court that has equal responsibilities to creditors and debtors. It is essentially a referee whose job is to ensure everyone plays by the rules.

Budget Planning

Free Advice That Will Change Your Life

Looking for unbiased financial advice? Whether you need help with balancing your monthly budget, rebuilding your credit, saving for your children's education, planning for retirement, or setting up a bookkeeping and tax remittance system for your new business, we can set you on the path to exceeding your wildest financial dreams.

If you have a question about money, debt, credit, or any other financial matter, we have honest answers and practical advice for every situation.

Liquidating Assets

Reduce Your Debt

One way to decrease your debt is to sell items you own on the open market for cash, allowing you to put the money towards what you owe. You could sell real estate, vehicles or recreational equipment for their cash value, or you could take investments and savings like RRSPs, TFSAs, RESPs or life insurance and use the proceeds to pay off some of your debt. If you are selling personal items, it’s always best to assess their current market values. You must also consider the best method to sell your belongings.

Debt Consolidation

One easy monthly payment

If you have the financial wherewithal to pay off your debt but are having trouble doing so because of high interest rates, a consolidation loan or a line of credit could be the best way to proceed.

There are no legal proceedings required, and a lender will likely give you a low interest rate by paying off all your debts for you in exchange for one monthly payment. Lenders will often require you to close the accounts whose debts were consolidated in order to prevent you from accumulating more debt.

Credit Counselling

Educate.

Credit counsellors may provide a debt management plan, or DMP, which is more informal than other debt reduction options but still requires the full repayment of what you owe.

You might not have to provide full disclosure of your current financial situation, and you don’t necessarily have to include all debts through credit counselling. Similar to a debt consolidation, your credit counsellor will make a proposal to your creditors on your behalf and require you to make only one monthly payment, but you are not protected like you would through a consumer proposal or bankruptcy.

Creditors who choose not to work with you on a debt management plan may continue to contact you or garnish your wages or take money from your bank account if you have an account with them and you owe them money. You are also required to pay a credit counselling company out of your own pocket.

Consumer Proposal

Reduce Your Debt Up To 90%

Stop interest, consolidate your debt into one easy monthly payment, and settle your debts for pennies on the dollar. Reduce all types of debts including bank loans and credit lines, credit card debt, pay day loan debt, finance company loans, Canada Revenue Agency (CRA) income tax debt, payroll/source deduction debt, and GST debt, Insurance Corporation of British Columbia (ICBC) debt, and student loan debt.

  • Consolidate all debts into 1 affordable monthly payment
  • Settle your debts for pennies on the dollar
  • Keep your assets
  • Avoid bankruptcy

Bankruptcy

Be Debt Free in Just 9 Months

The fastest and lowest cost option for getting out of debt. If your credit is already damaged, your income is modest, and you don't own many assets, bankruptcy can be a great way to turn things around very quickly. Sometimes the best way to repair your credit is to write-off your debt and start over. We'll help you rebuild your credit after bankruptcy so you can qualify for a mortgage, qualify for a car loan, and qualify for a credit card.

  • Stop garnishments, collection calls, and lawsuits
  • Eliminate your debts in as little as 9 months
  • Create a new financial plan
  • Rebuild your credit

Do Nothing

Stay Stuck

I am here to help, whenever you're ready.

 

Definitions

debt — something, typically money, that is owed or due
debtor — a person or institution that owes a sum of money
creditor — a person or institution to whom money is owed
consumer proposal — a formal, legally binding process that is administered by a licensed insolvency trustee (LIT). In this process, the LIT will work with you to develop a proposal, which is an offer to pay creditors a percentage of what is owed to them or to extend the time you have to pay off the debts—or both
bankruptcy — a legal proceeding involving a person or business that is unable to repay their outstanding debts. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt
licensed insolvency trustee (LIT) — federally regulated professionals who provide advice and services to individuals and businesses with debt problems. LITs help people make informed choices to deal with their financial difficulties
unsecured creditors — a person or organization that has lent money and has no right to the property or other assets of the borrower if the money is not paid back
secured creditors — an organization that has lent money under an agreement that they can take particular assets from the borrower if the money is not paid back