The Debt Pooling Program allows debtors to repay their debts at their own pace with one monthly payment that fits into their current budget. In effect this consolidates their debt load. Through this program, we have established over 150 lenders who have agreed to allow individuals the ability to repay their principal over an extended period of time at a reduced or 0% interest rate. Our specialists can help you to pay off your debt and rebuild your credit rating.

The Debt Pooling program is not part of the Bankruptcy and Insolvency Act (BIA). It is an informal arrangement we make with your creditors.

We are licensed to operate this program by Consumer and Corporate Affairs in Manitoba. We are bonded in accordance with provincial legislation in order to minimize any risk to the general public and to help ensure that the program is conducted in the public’s best interest.

Debt Pooling has a lot of flexibility primarily because it is a voluntary program. Unlike court ordered options such as the Orderly Payment of Debt, a Consumer Proposal, or Bankruptcy. These are legislated options and governed by the BIA, whereas Debt Pooling is a private and voluntary arrangement.

Some of the advantages of Debt Pooling are:

1. Payments are based on your ability to pay and are structured to fit into your current budget.
2. All fees are built into the monthly payment with the exception of the initial account opening fees.
3. We work to reduce or eliminate the interest, and most creditors will voluntarily lower the interest rate.
4. This program does not go to court, and requires no court order.
5. Creditors receive 100% of their principal back.
6. If your circumstances change, there is no penalty for default, with the exception of an account closing fee.
7. There is no penalty for paying out the program early.
8. There is an R7 credit rating for 3 years after completion of the program.
9. If your financial situation changes, all other options are still available.
10. If sufficient capital becomes available, we can make settlement arrangements with the creditors.

The program will allow the debts to be extended to a maximum of 60 months (5 years). We can get extensions in rare cases if more time is needed.

A Consumer Proposal is a legal process that allows a debtor, insolvent person, or business an opportunity to settle debts without filing for bankruptcy. The Consumer Proposal stops Judgments and Garnishments and allows for the repayment of debts as though they had been consolidated with a loan. This process is interest free and the client may pay less than what is actually owed. The balance of debts are forgiven and reported to the Credit Bureau as "paid in full".

A Consumer Proposal may be filed jointly if the client is married or living in a common-law situation and both parties signed together on the majority of the debt.

Family Tree Financial handles both individuals and families of all sizes who:

• Cannot meet their monthly minimum service payments of $10,000 or more of unsecured debt.
• Prefer to avoid bankruptcy.
• Have available cash flow to warrant a repayment schedule (at 0% interest) over a 36 to 48 month period.
• Would like to relieve stress, reduce debt and take control of their finances.

Anyone who finds themselves in the situation listed above is in a position for debt restructuring. If you'd like to get started, take our Free Assessment.

Different restructuring options have different effects on your credit rating. As a general rule any time you settle your debts at less than 100 cents on the dollar it will have a negative effect on your credit rating. For many, the question that must be asked is: is it worth it to take a hit on your credit rating to avoid paying back the money you owe? Any debts included in a Bankruptcy will show up on your credit bureau as an R9 (Bad debt; placed for collection; moved without giving a new address) while debts settled through an Informal Proposal appear as an R7 (Making regular payments through a special arrangement to settle debts).

The only way a person can rebuild their credit is to obtain new credit and then use it responsibly. The ability for a debtor to rebuild their credit after debt pooling will depend on many factors. For instance, it will depend on what type of debt restructuring the debtor has done as some are more damaging to a person's credit report than others. Some types of debt restructuring can have the debtor start almost immediately while others cannot begin for up to 36 months.

It will also depend on how diligent a person is on reestablishing their credit rating and whether you have someone who is familiar with the credit system assisting you in ensuring you are doing the right credit rebuilding activities at the right time.
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We handle nearly every kind of debt imaginable, including credit card debt, bad loans, leases, mortgages and more.