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Debt can come in many different forms, from student loans and maxed-out credit cards to mortgages and unmanageable Pay Day loans. While it’s common for most debts to build up slowly over time, we meet with a lot of people who have been confronted with debts that they couldn’t possibly have planned for – with ICBC debt being one of the biggest culprits.
Let’s face it, accidents happen all the time. The unfortunate reality is that one small “accident” could result in big balances being owed to the ICBC that most people simply don’t have the resources to pay. This is where we come in. We often help clients who have been denied their insurance coverage due to violations directly related to their coverage, if there was willful damage or illegal activity at the time of the accident, or people who simply had no coverage at all. Most people we meet in these situations were sailing along smoothly in terms of their finances until they were hit with this major, unexpected ICBC debt.
There is no expiry date on ICBC debt, and no statute of limitations applies here to forgive the balance. Debt to the ICBC is essentially government debt and they are not authorized to make a deal with you to reduce the amount owing – specifically if they are trying to recover claims paid out due to an accident.
But wait, unfortunately there’s more. Aside from owing a large amount of cash to ICBC, you will often be declined when you head into an ICBC office to renew your driver’s license or insurance coverage until the debt has been cleared.
The first thing you need to do is research your legal options – there’s a chance you may be able to dispute the debt, and a lawyer can help you determine if this is the case. If the debt is valid, ICBC isn’t heartless and they will often work with you to develop a payment plan for the full amount.
However, that being said, if the ICBC debt you’re on the hook for feels insurmountable and you’re unable to pay the full amount, a consumer proposal or personal bankruptcy can be used to eliminate (or at least significantly reduce) your ICBC debt.
Sound too good to be true? Click here to find out how we were able to help out Steve, a young man who was struggling to pay down more than $500,000 in ICBC debt.
Licensed Insolvency Trustee
Greg Best enjoys working with clients to create solutions for their financial needs.
CPA, CA, CIRP
Licensed Insolvency Trustee
Chris Sinclair believes a practical approach is required to solve serious financial difficulties.
Cynthia’s goal is to ensure that every client feels respected and understood and to instill hope that they can get their life back by giving them the fresh start they deserve.