BC Debt Settlement

For many of British Columbia's residents, the amount of consumer debt that they hold can make it seem as if they will owe money for the rest of their lives. Reducing the debt that you owe is an important first step toward paying off your creditors, and debt reduction will also encourage you to remain current on a debt repayment plan. BC debt settlement allows you to reduce your debt without harming your credit permanently, and many people in the province have found it the best way to get out from under the burden of what they owe.

Compared to Bankruptcy & Consumer Proposals, a debt settlement can eliminate the burden of your debt without the credit-crushing impact.  A Consumer Proposal is slightly less detrimental to your credit than a Bankruptcy but still leaves you as an unwanted credit risk.  A debt settlement on the other hand eliminates the debt without that risk.

Insolvency, Bankruptcy and Consumer Proposal statistics breakdown for BC

(Per 1,000 Population Aged 18 Years and Older)

	2018	2019	2020	2021	2022
British Columbia
Insolvency	2.6	2.8	2.1	2.0	2.4
Bankruptcy	1.0	1.0	0.6	0.5	0.4
Proposal	1.6	1.8	1.4	1.5	2.0
Vancouver Island and Coast
Insolvency	3.4	3.6	2.6	2.2	2.6
Bankruptcy	1.5	1.4	0.8	0.5	0.5
Proposal	1.9	2.2	1.7	1.7	2.1
Lower Mainland, Southwest
Insolvency	2.2	2.4	1.8	1.7	2.0
Bankruptcy	0.8	0.8	0.5	0.4	0.3
Proposal	1.4	1.6	1.2	1.3	1.6
Thompson, Okanagan
Insolvency	3.4	3.7	2.7	2.5	2.7
Bankruptcy	1.5	1.4	0.8	0.6	0.5
Proposal	1.9	2.3	1.8	1.9	2.2
Kootenay
Insolvency	2.6	2.9	2.0	2.2	2.2
Bankruptcy	1.2	1.2	0.6	0.6	0.4
Proposal	1.4	1.7	1.3	1.6	1.8
Cariboo
Insolvency	3.3	4.0	2.9	2.7	3.1
Bankruptcy	1.4	1.9	1.2	0.7	0.8
Proposal	1.9	2.1	1.7	1.9	2.3
North Coast and Nechako
Insolvency	2.0	2.0	1.8	2.6	3.0
Bankruptcy	0.9	0.9	0.6	0.5	0.4
Proposal	1.1	1.1	1.2	2.1	2.7
Northeast
Insolvency	3.4	3.6	3.1	3.9	3.8
Bankruptcy	1.2	1.3	1.1	1.1	0.7
Proposal	2.3	2.3	2.0	2.9	3.1

Table source,  Office of the Superintendent of Bankruptcy Canada

Debt settlement is a legal arrangement that allows creditors to accept a debt as paid in full for less than the amount they are owed. Especially when there has been no payment activity in several months, creditors are usually willing to accept sixty percent of a debtor's balance and write off the rest. Some creditors will even accept forty percent of the balance or less in order to receive at least part of what they are owed. Debtors negotiate with creditors, and the two parties agree on the amount that can be paid to settle the debt.

You are most likely to get the best debt settlement terms if you can make a lump sum payment to get rid of your debt. Other creditors may allow you to make a down payment on the balance and then pay the rest in installments. You should be aware, however, that creditors are not bound to the BC debt settlement agreement they reach with you if you choose a payment plan and miss one of your payments.

Professional financial help will ensure that you get the best debt solution for your needs. Fill out the Canadian debt relief form for expert assistance with debt relief in British Columbia.