Personal Debt Management Plan

In order to establish an effective debt management plan you first need to understand your budget. This involves detailed tracking of your household income and expenses. Find ways to reduce spending and increase income – then put the extra money towards repaying your debt faster. It is important to stop all spending on credit. Put away all but one credit card (ideally the one with the lowest interest rate) for emergency use only. This debt repayment strategy takes time and discipline. In order for this plan to be most effective all family members must participate, and be fully committed.

How Charlie Peet Can Help You With Your Debt Management Plan

Although many people feel they can achieve a positive outcome on their own with the information they have sourced from the internet, if they do not attain the desired results they are left feeling discouraged, frustrated and confused. By engaging a local professional with the knowledge and skills to guide you through establishing and implementing an effective debt management plan, each client leaves with the necessary tools to successfully move forward on their own. 



Debt Consolidation Loan

Approach your bank or financial institution about consolidating all of your debts into one loan. A single monthly debt payment is often helpful for budgeting purposes. If approved, immediately lower the limits on all available credit sources, but do not close any accounts as this can negatively impact your credit score. At this time it is important to stop spending on credit. Continuing to use credit could make your debt load too difficult for you to handle. 

If you do not receive approval for a consolidation loan ask your lender why. Your personal banker will advise you what the problem in your credit profile may be. Examples of some reasons people are denied credit may be because their total debt service ratio is too high; or they have applied for credit repeatedly over a short period of time; or there is negative payment history reporting on their personal credit file. 

How Charlie Peet Can Help You If You Are Denied a Consolidation Loan

If you are denied a consolidation loan Charlie Peet can sit down and discuss all of the options you may have to move forward and resolve your financial situation. It is important that you do not continue to apply to other institutions if you have already been turned down from your bank.


Consumer Proposal

A consumer proposal is a formal, legally binding process that is administered by a bankruptcy trustee. An offer is put forward to pay creditors a percentage of what is owed to them. The offer must be better than what the creditors would receive if you were to make an assignment in bankruptcy. Creditors have 45 days in which to accept or reject the proposal as it is presented to them.  A consumer proposal is only made to your unsecured creditors (i.e. credit cards, unsecured lines of credit, CRA debt). Some debts that won’t be resolved with a consumer proposal are student loans if they are less than 7 years old, spousal or child support arrears, court fines for criminal acts, and secured vehicle or mortgage debts. 

How Charlie Peet Can Help You With a Consumer Proposal

Only a trustee can file a consumer proposal. A trustee is an officer of the court and represents your creditors. Charlie Peet works for you, not your creditors. He is well-versed in the formal insolvency process. Charlie is well respected in this industry, with over 15 years working with clients through their financial matters.




Bankruptcy is a legal process available to resolve your debts. Once you are formally declared bankrupt you will stop making payments directly to your creditors; any garnishments against your salary will stop; and any lawsuits against you by the creditors will also be stopped. This is a big step with long-term implications. 

The length of bankruptcy will be dependent on many factors, including your income and the size of your household. The process for a first-time bankrupt will take 9 or 21 months. For a second-time bankrupt, the process is 24 or 36 months. A number of duties are required to be performed over the term of your bankruptcy in order to be eligible for a discharge from your debts. 

Below is an example of some of the events that take place once you have been declared bankrupt, according to the Office of the Superintendent of Bankruptcy (OSB) Canada website:

  • You are required to submit monthly income and expense reports to the trustee for the term of your bankruptcy.

  • Your assets will be sold by the trustee – assets that are exempted by provincial and federal laws are excluded from this sale.

  • You may have to make ‘surplus income’ payments in addition to the trustee’s fees. If your surplus income, as set out by the OSB annually, is more than $200 per month, you will be required to contribute 50% of that amount.

  • Any income tax refunds, for the year you file bankruptcy, will paid into your bankruptcy estate for distribution to your unsecured creditors.

  • You will be required to attend two financial counselling sessions.

If you receive any windfall, such as an inheritance, lottery winnings, or life insurance proceeds – you are required to notify the trustee and surrender the funds for distribution to your creditors.

How Charlie Peet Can Guide You Through a Bankruptcy Process

Only a licensed trustee can implement a process under the Bankruptcy & Insolvency Act (BIA).  As per the OSB a trustee is an officer of the court and represents your creditors.  The trustees role is to implement the legislation and ensure the integrity of the system. When dealing with a trustee you will be referred to as the 'debtor' or the 'bankrupt.' You are not their client.

You need someone working for you in the process and Charlie works for you not your creditors. Evidenced by the numerous testimonials, Charlie has a complete understanding of each client's needs, and the skills to make the process run smoothly for the best possible outcome.