2026-07-15
Bankruptcy versus Consumer Proposal timelines: What to expect from start to finish
Informal Debt Settlement
An informal debt settlement is a voluntary arrangement negotiated between you and your creditors, without the comfort of ensuring you have a legally binding agreement and the step-by-step guidance provided by a Licensed Insolvency Trustee. Your creditors have no legal obligation to work with you on creating a debt agreement and they could cancel it with little or no notice if it is not properly documented in a binding legal document.
How Informal Debt Settlements Work
To develop an informal debt settlement, you will have to first call each of your creditors directly and attempt to negotiate a repayment plan that’s within your budget and satisfies each creditors’ repayment timelines. Each creditor will separately want to negotiate interest rates, amounts and payment schedules. You will then be responsible for the payment obligations according to the terms of the voluntary agreement. The more creditors you have, the more challenging it can be to agree upon and manage each of these agreements.
Deciding on an Informal Debt Settlement Agreement
If you’re uncertain or uncomfortable about the risks involved with this type of debt agreement, talk to your local Licensed Insolvency Trustee to discuss whether it is a good choice for you. We will take the time to listen to your concerns, answer any questions and explain all of your options.
Life-Changing Debt Solutions is about finding the best choice that will work for you.
Latest Blog Posts
2026-07-13
MNP Consumer Debt Index: Saskatchewan and Manitoba residents caught in pre-spent paycheque cycle amid sustained cost pressures
MNP Consumer Debt Index
According to the latest MNP Consumer Debt Index, nearly three in five Saskatchewan and Manitoba residents (57%) say at least half of their income is already committed to bills, debt payments, and regular expenses before it arrives.
2026-07-13
MNP Consumer Debt Index: Manitoba and Saskatchewan residents caught in pre-spent paycheque cycle amid sustained cost pressures
MNP Consumer Debt Index
According to the latest MNP Consumer Debt Index, nearly three in five Manitoba and Saskatchewan residents (57%) say at least half of their income is already committed to bills, debt payments, and regular expenses before it arrives.
