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From CTV News (CP) -

Understanding last-resort options when you can no longer pay your debts

TORONTO -- If you've found yourself with an overwhelming amount of debt, you can at least take comfort in knowing you're not alone.

Canadian debt levels have been rising for decades, with the average family now owing $1.78 for each dollar of disposable income, compared with 66 cents for each dollar of income in 1980. Overall household debt has climbed 54 per cent in the last decade to reach $2.2 trillion.

The rising levels of indebtedness have left many households vulnerable, said Laurie Campbell, CEO of Credit Canada Debt Solutions Inc.

For those feeling overwhelmed and unable to pay their debts, there are two regulated, last-resort options: bankruptcy, and the less drastic consumer proposal.

Both put a freeze on creditors and allow you to eventually get out of debt while only paying part of what you owe.

Under a consumer proposal the amount paid back is negotiated with creditors, while bankruptcy payments are set by laws that also require you to sell assets.

https://www.ctvnews.ca/lifestyle/understanding-last-resort-options-when-you-can-no-longer-pay-your-debts-1.4355773