Many British Columbians have experienced personal and financial stress as a result of the COVID-19 pandemic. On the financial side, COVID-19 has caused
- changes in household income and expenses
- changes in people’s spending habits
- long-term employment uncertainty, and
- confusion for businesses on how to adapt and continue
operating
If you were already burdened by debt, COVID-19 has likely made this burden feel heavier. You are likely more focused on, and concerned about, your ability to keep making your debt payments while managing everyday expenses.
But as B.C. Provincial Health Officer Dr. Bonnie Henry would say, this is a time to stay calm. It’s important to not rush into a decision about how to deal with your debt. Take some time to determine the likely long-term effects on your household budget and the stability of your household income. Remember that the Canada Emergency Response Benefit (CERB), mortgage payment deferrals, and creditor leniency will eventually end. When that happens, you may find you have not returned to the same job or have the same income to deal with your debt.
You need a plan that allows you to deal with your debt but still have enough money to meet your ongoing living expenses. Some options to consider include debt pooling (through a credit counsellor), a consumer proposal, or going bankrupt.
In British Columbia, only a licensed insolvency trustee can administer a consumer proposal or a bankruptcy. R. West & Associates Inc. is a Licensed Insolvency Trustee with over 20 years of experience in helping people deal with their debt problems. We offer a free initial meeting where we assess your financial affairs and review your available options.
Consumer proposal
A consumer proposal is a negotiated monthly payment plan for a specific time period. It can settle your debt obligations for significantly less than the total amount you owe. It is often a viable alternative to bankruptcy if you have some certainty and stability of income to make the plan work. See the pros and cons of consumer proposal.
Bankruptcy
Bankruptcy is a legal process that gives you immediate relief from your unsecured creditors. It allows you to rid yourself of your debt and get a fresh financial start. See the pros and cons of going bankrupt.
R. West & Associates Inc. is here to serve you and is COVID-19 ready. See how we’re taking care and keeping our offices safe for you). Whether we use a video conference or meet in person, we’ll listen carefully to your concerns and explain your options.
Our offices are in Surrey (Guildford) and in North Burnaby (Production Way & Lougheed Hwy).
Call 604-591-7634 to set up your free initial assessment.