Parents need to have a solid track record of on - time
payments with other creditors, few to no black marks on their credit report, and steady employment to qualify.
Sometimes it can be helpful to point out if you already have payment arrangements in
place with your other creditors, and that a final charging order would upset these.
If this happens to you, try to work something out
with other creditors so that you can afford to make payments to everyone.
A creditor may be willing to accept debt settlement if they believe you are unable to pay the debt in full and may resort to declaring bankruptcy, in which case the creditor may have to wait in
line with other creditors and possibly receive nothing.
You certainly CAN negotiate on your own a lower interest rate with a single creditor, but when they find that you have
accounts with other creditors, they prefer that you work with a CCA.
Creditors became concerned about doing business with a consumer who would repay their account in a timely fashion, and had proven timely
repayment with other creditors as well.
The landlord does not want to have to
compete with the other creditors for a few pence in the pound out of the proceeds of sale of the business, particularly when the rent that is owed is not an old debt but an ongoing and increasing one.
You authorize the obtaining of a consumer report to be used in evaluating this application and the obtaining and exchanging of credit information from and
with other creditors and consumer reporting agencies.
In cases where companies have filed for protection from creditors, such as Nortel, employees and pensioners are lumped in
with the other creditors to try to collect the money they were promised.
As such, Abitibi argued that the Province had to line up
with other creditors and file a claim under the CCAA.