Insolvency Proposals on the Rise: Canadian Consumers Realizing Options Other than Bankruptcy Exclaims

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Leading Debt Arbitrators

The latest numbers from the Office of the Superintendent of Bankruptcy Canada show that the number of insolvencies in Canada is up, increasing to 11 percent from January. However, these same numbers show that the number of insolvency proposals is also up 32 percent.

As Canadians become educated about changes to the Bankruptcy and Insolvency Act, more and more are taking advantage of their legal right to file consumer proposals instead of opting for bankruptcy. Debtors, who owe less than $250,000, excluding the mortgage on their main residence, are eligible to file a consumer proposal, which allows them to pay back only a portion of their debt or to have more time to pay off their debt.

Leading Debt Arbitrators, Inc. is a leader in the field of debt settlement. Many debt settlement consultants turn to the company for specialized training and answers to their most technical and complex questions about debt settlement. Cherylanne Higgins is the Chief Operations Officer of Leading Debt Arbitrators, Inc., and she has worked with a number of major collection firms in Canada during her more than 10 years in the credit and debt collection field.

Ms. Higgins says, “I believe with my experience and knowledge in the debt industry that we will help many Canadians get through this tough time. Our main focus is to educate the consumers about their options, help them get out of debt in a relatively short time, and give them a fresh start.”

She offers these tips for consumers who want to take control of their debt situation without filing for bankruptcy.

  •     Get educated. Knowledge is power about insolvency. Many people believe that bankruptcy is their only option, but that simply is not the case. The more consumers understand about their situation and the more they know about all of their options, the better equipped they will be to get out of insolvency.
  •     Get out from under high interest debt. Consumers who live under high interest debt just end up paying interest on interest. They can never finish paying off their debt while they are under high interest debt. One type of debt that carries the highest interest is credit cards, and individual store credit cards carry an even higher interest rate than the average Mastercard or Visa. Consumers should avoid credit cards at all costs.
  •     Remind yourself of the lost opportunities. The burden of debt leads to nothing but lost opportunities, but when consumers start realizing that there is so much more they could be enjoying in life, they become motivated to get the education they need in order to change their situation. Often all the average consumer needs is a little motivation to realize that something has to change.
  •     Opt for debt settlement rather than bankruptcy or simply continuing to pay. Most consumers have no idea that they have an option besides bankruptcy or just continuing to make payments. Usually the result of simply continuing to make payments is getting even further into debt, although many Canadians do it because they do not want to file bankruptcy. Debt settlement is the only true answer to getting out from under the burden of all that debt.

Debt settlement is the most intelligent option because it gives consumers the opportunity of a fresh start. Most of the slate is wiped clean, and they get the chance to start over again in a relatively short amount of time without the burden of a bankruptcy on their record.

About Leading Debt Arbitrators:

Leading Debt Arbitrators has been helping individuals and families break free from debt for many years. The company works as a negotiator for consumers who feel like their debt is getting the best of them. Highly skilled professionals work on the behalf of the consumers to dramatically reduce their debt. Leading Debt Arbitrators is not a consumer credit counseling service. CCCs are funded by the financial industry, which means they do not have the consumer’s best interests at heart. Leading Debt Arbitrators offers a consumer-focused debt settlement solution.

For more information, contact info at or 1-877-767-9880.


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