Thank you for your response to my earlier question regarding Proposals. Just so that people are aware, Credit Counselling Services of Alberta does do Proposals (for a small fee) for clients as a means of resolving financial issues. In June 2002 they negotiated a settlement on my behalf with my creditors so that I paid them a lump sum portion of what I owed them and the creditors released me of any further financial obligations to them. This worked well for me because my debts were 4+ years old and they could not take any legal action against me.

Thank-you for your comments, I'm glad CCSA was able to help you. Just to clarify, the program CCSA administers is O.P.D. - Orderly Payment of Debts - which also falls under the Bankruptcy and Insolvency Act but can be administered only through their organization. It differs from a proposal in that creditors receive 100% of their debts, usually in 4 years, at 5% interest. Like bankruptcy and proposals, there is a stay against actions by creditors. Proposals are typically settlements for less than 100% and must be done through a Bankruptcy Trustee. Up until 5 years ago CCSA could also do proposals but are no longer allowed to do them.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca