ICBC Debt Settlement Solutions
Insurance Corporation of British Columbia (ICBC) is a government corporation that is created in 1973. It is a non-profit insurance corporation in Canada. The reason for establishing this insurance corporation is to provide universal and affordable insurance policies to the citizens of Canada.
This is an auto insurance policy that you have to take if you are a citizen of Canada. You must pay for this after a specific period of time. For this reason, debt can be created if you are unable to pay continuously. Sometimes, debt also can come from different types of small loans like student loans there.
However, some people are really unable to pay this type of debt. It may be caused by an accident or something like that. That is why here in this article, we will give you the latest ICBC debt settlement solutions. Surely, this article will help you a lot in your ICBC debt settlement process. Without any doubt, you can follow this article in your settlement process.
ICBC Debt Settlement Solutions
We have discussed that how ICBC debt can be created. You have to pay this by any means because it is government debt, and there is no authorized way to reduce and avoid it. There is no expiry date of this debt, and there’s also no statute of limitations here.
Besides this, you will always be declined whenever you want to renew your driver’s license and insurance coverage if you don’t clear the debt. In that case, if you have a reasonable cause, you may have some options to eliminate your ICBC debt.
When the amount of a person’s debt is increased at a point where it is not possible for that person to pay the debts, the debtor ends up in insolvency. These insolvent debtors must have a minimum of $1000 debts. If you are one of them, the first thing you can do is, finding legal options. You can take some legal advice from a lawyer.
Here, licensed insolvency trustees work to give the insolvent people access to government-regulated insolvency options. Among them, there are two main types of debt settlement solutions you have in Canada to settle ICBC debt, consumer proposal, and personal bankruptcy. Here we will give you in-depth information about these types of debt settlement solutions.
Consumer Proposal in Canada
A consumer proposal is one kind of debt settlement option where a proposal is given to the authority to pay the creditor a significant percent of the debt, extend the deadline to pay the debts, or combine both of them.
What You Need to Know About Consumer Proposals
If you want to file a consumer proposal, you have to meet some essential criteria. Those essential requirements are given below.
- The amount of your debt will be a maximum of $250,000 and a minimum of $1000. Here for filing a consumer proposal, you must have the ability to pay one significant portion of your total debt.
- Your monthly payment will be remaining the same before being accepted the consumer proposal.
- You don’t have to report your income or expense to the authorized insolvency trustees for filing a consumer proposal.
- You can have your main assets like home, vehicles, and so on even after filing a consumer proposal.
- After filing this, you don’t have to pay the interests. It will be stopped as soon as you file this.
- You have to pay the total debt within five years or less time. This time will be started after being accepted the consumer proposal.
- You will easily be able to keep all the tax refunds or credits after applying for it.
- You will still be able to be the director of a limited company after filing the proposal.
These are mainly some requirements of this ICBC debt settlement option. These are not so hard to be followed. Moreover, this settlement option is very citizen-friendly.
Advantages of Consumer Proposal
This settlement process has a lot of advantages for the debtor. We will recommend you use this option in your settlement if it is possible. The most significant advantages are as follows.
- The most significant advantage of a consumer proposal is that you will still retain your assets- home, the vehicle, including RRSPs.
- Here you don’t need to carry other additional fees beyond the negotiated payments.
- After filing this proposal, you don’t have to give the interest of your debt anymore. It will be frozen.
- By filing this consumer proposal, you will get some legal protections like wage garnishment, legal actions, and so on from your creditor.
Personal Bankruptcy in Canada
Personal bankruptcy is a legal debt relief method created for bankrupt people and his/her family to give some financial support trapped in a huge amount of debt. According to the law of Canada, you will only be considered bankrupt when:
- You have a debt of at least $1000,
- You are unable to pay the loan and
- Your assent will not cover your debt if you sell them all in the current market value.
According to the authorized bankruptcy trustees, if you can meet these three requirements, you will be bankrupt. There have a lot of bankrupts who are really honest and hard-working. They are struggling to pay all their bill, but somehow, they are not able to. There are some significant reasons for being bankrupt, like divorce, loss of a job, business failure, serious illness, or family emergencies.
Personal bankruptcy is created for those genuine and honest bankrupts to eliminate their bank loans and focus on their future and financially stable. This ICBC debt settlement option will allow you to get immediate protection from the creditor.
What You Need to Know About Personal Bankruptcy
There have a number of things you need to know about personal bankruptcy to file this when you are unable to pay ICBC debt. Here are the most important things that you need to know:
- This option of debt settlement is suitable for those who have a minimum of $1000 of unsecured debt. Here there is no maximum limit.
- In this case, your monthly payment will be determined according to your income. You will only pay when you have some earnings.
- You will be able to retain your assets up to $32000.
- If you are a director of a limited company, you will not continue with that post. But you will still be able to be self-employed.
- After filing for personal bankruptcy, you have to submit your personal income and expense every month.
- Here, you will not be able to keep all the tax refunds or credits after applying for it.
In a nutshell
These are mainly the two most common ICBC debt settlement solutions. Both of them have some advantages and disadvantages for the debtor. But among them, a consumer proposal is much preferable that personal bankruptcy.
After reading this article, you will also be agreed with us. We have given all the necessary information regarding these two methods. Now it is your turn to choose the best one for you that suits you most.
We hope you have got everything needed regarding this topic. Then again, if you have any other things to know, feel free to ask in the comment section. We will clear your confusion as soon as possible.