Albertans with the financial wolves at the door are more likely than many Canadians to repay their debts without resorting to bankruptcy.
The percentage of people restructuring their finances through proposals rather than bankruptcies has been higher than the national average since 2013, said Donna Carson, MNP senior vice-president and bankruptcy trustee.
In 2018, insolvency was handled through proposals 65 per cent of the time, compared with 55 per cent nationally.”
Carson believes the option is a sign that many Albertans who got into financial trouble are working again and can start chipping away at their debt.
“People are working somewhere but it’s not the same industry, it’s not the same pay cheque. But I can do something.
“That’s kind of what proposals are about, offering creditors a settlement based on what I can do,” she said. “I think that’s why you see more proposals (in Alberta).”
While having to resort to making a debt repayment proposal to dig out of a financial hole, it can be a better option for many.
Once a repayment proposal has been paid out it only stays on credit rating lists for three years, compared with six or more years for bankruptcies depending on past history.
Bankruptcy can also have an impact outside of finances. For instance, it can affect those trying to sponsor family members immigrating to Canada or cause issues for those whose jobs require being bonded.
Whatever route someone takes, Carson, who has been in the business for 29 years, has the same advice.
“In general , I’ve always said if you are struggling may sure you come up with a plan that fixes the whole picture. If it only fixes a piece of it, it may not be the answer.”
pcowley@reddeeradvocate.com
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