Types of Debt in Canada

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    Types of debt in Canada

    Debt is an amount of money you borrow from another party. It is often used to make large purchases you would otherwise be unable to afford. Purchasing a new car using a loan or buying a brand new oven using a credit card accrues debt.

    There is no problem with having debt, as long as you can pay the money back by the date agreed upon by you and the party you borrowed from. If you miss payments to your creditors, financial consequences follow which can ruin your credit and lead to other problems.

    If you have personal or corporate debt you are unable to pay off, you need debt help. Kitchener and Hamilton residents and corporations rely on the Licensed Insolvency Trustees (previously known as Trustees in Bankruptcy) at Harris & Partners Inc. for debt help and counselling.

    Types of debt help

    • Personal bankruptcy – If you are an adult owing at least $1,000.00 and cannot pay off your debt, you can file for bankruptcy. In this process, you can get a fresh start by assigning your assets to a Licensed Insolvency Trustee to eliminate your debts.
    • Corporate bankruptcy – An option of last resort, corporate bankruptcy can be initiated by a debtor or creditor. Your corporation’s assets will be assigned for the general benefit of your creditors.
    • Consumer proposal – An alternative to bankruptcy, a consumer proposal is an offer made by you to your creditors requesting lower payments over a longer period of time, which can make paying your debts easier.
    • Corporate proposal – Becoming insolvent means you are unable to pay your corporate debts. To avoid serious legal problems, there are formal and informal arrangements you can make with your creditors to pay off your debt on a new schedule.
    • Debt consolidation – By combining all of your debts into one new loan with one monthly payment, debt consolidation can make managing your debt much easier.
    types of debt

    Car Loans

    We can take a look at your budget and determine whether you have enough funds to continue to service your car loan.

    Bankruptcy for car loans

    Are you facing car loan debt? Harris & Partners can guide you through the different ways to deal with your car debt.

    Consumer proposals for car loans

    Are you looking for an alternative solution to bankruptcy? Read about our Consumer Proposals.

    Alternative car financing options

    Our alternative car financing options can help you avoid red flags when dealing with debt.

    Credit card debt loans

    Can’t keep up with your credit card loans? We can help with debt relief solutions here.

    Student loans

    Is your student loan causing serious financial issues? Our debt management team can help.

    Payday loans

    Having difficulties with payday loans? We can help you with your debt.

    Tax debt

    Tax debt is an issue that can come to you very quickly. We offer tax debt help here.

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