How does your program work?

It starts with a free assessment of your monthly expenses, net income, assets, and debt load. Once we have determined that your cash flow is sufficient to cover your basic living expenses, and have confirmed that you are having difficulty meeting the required payments on your credit cards and/or personal loans, we would custom tailor a managed repayment program based on your ability to pay and present it to your creditors for approval. Your creditors will promptly return signed approval forms to our head office consenting to the repayment program. With the arrangements in place, the collection calls will end and you can begin making your monthly deposit with mydebtsolution.com in trust for distribution to creditors.

Overall a managed repayment program will feel like a consolidation loan in that you will be making one payment per month. The difference of course is that you have consolidated your debts without borrowing more money!

How long can a repayment plan take?

For the most part, creditors will accept a repayment plan of 6 years or less.

How does your program compare to a ‘non-profit’ credit counselling society?

The Canadian Bankers Association, Retail Credit Grantors Associations, and specific retailers, sponsor and/or fund the "Non-Profit" Credit Counsellors to the tune of (in the case of the banks) twenty-two cents on each dollar tendered, and in the case of retailers, fifteen cents on every dollar collected.

In addition, a monthly fee for service of ten cents on the dollar is collected from the debtor (to a maximum of fifty dollars per month) to the "Non-Profit" agency.

Because of this arrangement there may be a perception of a bias in favor of the creditors, however a society would strongly deny any bias. A "Non-Profit" Society can be created by anyone, and can be a very easy vehicle to conceal profits by way of paying large salaries to it’s principals.

We do not collect fees from the creditors.

Are you Licensed?

Yes, mydebtsolution.com ,our head office, Fraser Valley Credit Counsellors, and our consultants, are licensed by The Ministry of Attorney General of British Columbia. In addition, we maintain a bond in accordance with the British Columbia Debt Collection Act.

We would be pleased to provide you with a copy of our Goverment License. Just go to 'Ask a credit consultant' and send us your request. Be sure to provide your fax number and/or complete mailing address.

Will a repayment program affect my credit rating?

Almost all people who contact us for assistance have either had a history of missed payments or are beginning to miss payments as a result of a change in life circumstances. If this is you, chances are your credit rating is already affected. Any positive or negative information on your report will remain there for 6 years. When you commence a debt repayment program with mydebtsolution.com your creditors will suspend collection activities and report to the credit bureau that you have entered a repayment plan or consolidation order. Information relating to your mydebtsolution.com program will be purged from your credit history in 3 years instead of 6.

What type of debts can I include?

Virtually all forms of unsecured consumer and private debt is included. Secured creditors, that is creditors who have a registered lien on a chattel such as an automobile, boat or home, are usually excluded from the repayment plans. We will include them and negotiate reduced payments if the value of the collateral security is less than the outstanding balance owing.

Can you stop legal actions and garnishments?

Yes! Laws may vary from province to province but the fundamental principles of 'having your day in court' remain the same. Creditors usually resort to legal action as a means to secure their debt by way of a judgment. Legal action (or the threat of) is also an effective pressure tactic used to encourage you to pay. We can get involved at virtually any stage of the legal process and work towards an agreeable arrangement with your creditors. In addition we will guide you through the process of filing the necessary court documents to secure a payment schedule that is in accordance with your ability to pay.

How do I make the payments to you for distribution to my creditors?

Our clients remit payments by way of pre-authorized electronic deposit, money order or personal cheque mailed to our head office in Langley, B.C.

What's the difference between this program and a consolidation loan?

Unlike a consolidation loan, our program does not involve borrowing money. Your managed debt repayment program is funded by a monthly payment you deposit with us in trust for distribution to creditors. The program is based on your ability to pay and may be appropriate if you are unable to qualify for a consolidation loan.

How does your program compare to Government programs such as Orderly Payment of Debts (O.P.D.)

In those provinces that still provide (O.P.D.), the government sponsored programs provide a legal process under the Bankruptcy and Insolvency Act that compels creditors to cooperate. In return the creditors receive an automatic judgment against you, which means that if you do not make the agreed to payments the creditor can automatically garnishee your wages, seize your bank account(s) or any assets. In addition they will register liens against any assets you may own in favor of all your creditors. Our program, however, is a flexible voluntary plan that does not award automatic judgments to your creditors.

What happens if I am unable to make the agreed to payments?

If your situation changes and you are unable to make your regular payments it is critical that you openly discuss the situation with us! If your situation is short-term, we can put your program on hold and advise your creditors of the reasons. If long-term, we can revise your proposal with a lower monthly payment.

Is this like filing for bankruptcy?

No! When you file for bankruptcy you are asking your creditors to write- off the money you owe to them. When you go into a managed repayment program you are offering to repay the credit that has been extended to you, in good faith, under the terms of a voluntary debt pooling plan that is based on your ability to pay. You are also asking your creditors to reduce or waive interest on your account and to accept a compromised payment.

Unfortunately, either program will affect your credit rating. With bankruptcy, your credit bureau report will show that you went bankrupt and you will have the worst possible rating of R-9 or I-9. This will remain on your credit history for at least 6 years. Even when the reference to bankruptcy has been removed you will still be considered a 'prior bankrupt' and you may be compelled to disclose that fact in certain situations.

Whereas reference to a managed repayment program will be removed from your credit history 3 years after the debt has been paid off and that would be the end of any reference to your debt problems.

How much does your service cost?

Our initial assessment is free of charge. Administration fees are based on the number of creditors involved, the complexity of your case, and your ability to pay. All fees will be disclosed to you in detail once we have reviewed your situation. In most cases, fees are more than offset by interest rate concessions we negotiate with your creditors. If you successfully complete your program our service should not have cost you anything! In fact we will save you money.

Can you negotiate discounted settlements?

Yes! We specialize in discounted settlements with creditors when a lump sum of money is available. A nominal administration fee is charged and is based on the number of creditors involved, the complexity of your case, and your ability to pay. All fees are included in your monthly payment and will be fully disclosed to you once we have reviewed your situation. Settlements are always encouraged and are an extremely cost effective way to get your debt under control.

How do I know if I qualify for your help?

If you are experiencing difficulty paying your creditors, feel you are not making progress towards getting out of debt, have a regular source of income, can live within a realistic budget, can handle one affordable monthly payment, and have a sincere desire to be debt free, you are a candidate for our program.

How do we get started?

It's easy, just go to the Quick Assessment page of this site and complete the short income and expense summary form. Click submit and a licensed consultant from our office will review your situation and contact you by email or telephone.