INSOLVENCY ARTICLES

What Options are Available for my Situation?

If an individual or business is having financial difficulties, there are various options that may be available. The key to exploring these options is to seek advice early, at the onset of troubles, when the most options will still be available.

Individuals

Options can either be voluntary ideas that you work out on your own, or they can be formal programs. Ideas for you to consider:
  • Rework your budget by increasing your income, reducing expenses or a combination of both;
  • Sell unsecured assets;
  • Refinance over a longer period of time (however be conscious of the interest costs);
  • Consider a consolidation loan;
  • Borrow from family or friends, but be sure to put all arrangements in writing;
  • Talk with your creditors and let them know what is going on;
  • Ask your creditors if they will defer payments or accept lump sum settlements.
If you’ve tried these on your own or they just won’t work, there are formal programs available:
  • Orderly Payment of Debt, or a Debt Pooling Program – can you pay them in full but need the debt consolidated?
  • Proposal to your creditors – do you need a longer period of time to pay, or can you pay them part of what you owe them?
  • Bankruptcy – do you need a fresh start?

Businesses

The following are a few of the ways that we help a business, whether it is to turn-it-around, or assist in an orderly windup:

  • Review the business and assist in making key changes.
  • Refinance to identify viable options for your situation.
  • Business assessments and viability studies can help to enhance the decisions you need to make.
  • Develop a sound proposal to your creditors and bridge the gap between you, the bank and other creditors.
  • Monitor the business on behalf of the owners or perhaps the bank, to give your banker a comfort level while you restructure.
  • Formal appointments – as Receiver or Trustee.
The key to being able to work through any of these options is to contact a Trustee to seek professional advice early, while different options are still available to you. Resolving your insolvency issues on your own can be very difficult unless you know what your options are. If any of these warning signs sound familiar, you should contact a Trustee to seek professional advice. It’s never too late to get sound advice.

Contact Information

Donna Carson, CGA, CIRP, Trustee is a Senior Vice President with Meyers Norris Penny Limited in Calgary, AB. For more information, call Donna at 403.538.3187. Consultation calls and meetings are free and confidential.

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