More Help Needed for Islanders Dealing With Debt

A licenced insolvency trustee in Charlottetown is calling on the federal government to put in measures to help Islanders who are dealing with job loss also deal with their debt repayment and avoid bankruptcy, The Guardian reported. "People are stressed and scared, said Walter MacKinnon, who is also vice-president with MNP in Charlottetown. He said one type of call he has been receiving recently is from people who have made an insolvency proposal that has been accepted. The concern is that if someone misses or falls behind on three consecutive payments, federal legislation requires that the proposal goes into default, which could involve the proposal being reactivated or amended or, in some cases, bankruptcy. MacKinnon said MNP has reached out to the Office of the Superintendent of Bankruptcy to see if there is any way it can extend the default period from three months to six months – or longer. Read more

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