Advice and solutions go together

The relevance of our advice, the quality of our client services as well as our management skills are the cornerstones of the support offered by AJB Solutions.

Situation scenario and symptoms

  • From one paycheque to the next, you are continually borrowing money to make ends meet.
  • Your creditors are pressuring you to reimburse your debts and are threatening to sue you, to repossess your car or your furniture, or are using the services of a debt collection agency.
  • Your wages are being garnished.
  • Hydro-Québec is threatening to disconnect you.
  • Your list of creditors keeps getting longer.

These are just a few hints that you should act quickly and take steps to correct the situation before things get even worse.

The SOLUTION begins with AJB

We will assist you in overcoming the situation by providing direction as to the steps you should take moving forward, for a brighter future.

Solutions to be considered

  1. Reach an agreement with your creditors
  2. Take out a debt consolidation loan
  3. Consumer proposal
  4. Bankruptcy
  5. Voluntary deposit

Agreement with your creditors

Explain why you are unable to make your payments and suggest making smaller instalments over a longer period of time.

We can also make these arrangements for you.

Consolidation loan

Inquire at your bank or other financial institution about the possibility of consolidating your debts into a single loan.

In such a case, the bank or financial institution will settle all your debts and roll it all into a single loan, which you will repay with a single monthly payment.

To be eligible for such a loan, you must have an acceptable credit rating. Of course, you will be required to pay interest on the loan.

Consumer proposal

This solution is gaining in popularity, especially since the introduction of the Bankruptcy and Insolvency Act, which came into effect on September 18, 2009. The Superintendant of Bankruptcy is more demanding for bankruptcy discharges (see section on bankruptcy). The consumer proposal allows for the suspension of your creditors’ legal procedures in order for you to make a settlement offer based on your payment capacity, to keep your assets, to be released from your debts and to protect your electrical hook-up services, thus putting an end to harassment from your creditors.

Why should you consider a consumer proposal?

  • Reduction of your debt
  • More time to reimburse your debts
  • Avoid bankruptcy
  • Keep your assets (car, home, RRSP)
  • End creditor repossession (protect your income)
  • Make a single, pre-planned and affordable monthly payment
  • Stop paying interest

Creditors usually appreciate the fact that you are willing to make certain efforts to reimburse them, at least partially. Your credit rating will be affected much less than if you had declared bankruptcy; you will get to keep all your assets and, while the consumer proposal is in effect, you will also have adopted much better budget management skills.


When all other solutions have failed, it is quite possible that the only remaining solution to your financial difficulties may be bankruptcy.

Bankruptcy is the act of alienating your assets to a bankruptcy trustee in order to settle your debts. This solution effectively suspends any collection procedures by your creditors (wage garnishment will also be suspended).

Since September 18, 2009, the timelines stipulated by the new law and applicable for bankruptcies declared since that date, are as follows:

1- First bankruptcy
Automatic release in the absence of opposition:
Without surplus income: 9 months
With surplus income : 21 months

2- Second bankruptcy
Automatic release in the absence of opposition:
Without surplus income: 24 months
With surplus income : 36 months

3– Third bankruptcy
12 months after the date of bankruptcy
Mandatory court hearing
The court may decide to prolong the bankruptcy.

4- Bankruptcies with large fiscal debts ($200,000 and up) representing at least 75% of total debt
Mandatory court hearing
Variable release conditions as decided by the court on a case-by-case basis

Important : The new law stipulates that if you have surplus income at any time during the bankruptcy, the duration of the bankruptcy will be prolonged by as many months as outlined above.

Voluntary deposit

For residents of Québec, this is the Loi sur le dépôt volontaire, also known as the Loi Lacombe.

You are required to make a monthly deposit with the court (with minimal interest) determined according to your salary and family obligations. The managing office for this program is usually located in your regional courthouse.