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ICBC Debt in British Columbia

People can incur debt in a variety of ways. Whether it’s due to unexpected expenses, unemployment, a health issue, or divorce, once a debt has cut into the monthly budget, it can be challenging to pay it off. Debt continues to build with credit card charges or high-interest rates. Even the Insurance Corporation of British Columbia (ICBC) can be a source of debt for many in British Columbia. At Smythe Insolvency, we are dedicated to providing reasonable ICBC debt solutions facilitated by Licensed Insolvency Trustees. While driving is necessary for many, it can create financial headaches for drivers who accrue unexpected balances through insurance coverage denials, unpaid fines, Driver Penalty Point Premiums, or even unpaid interest owed to the ICBC on debts. If you’re struggling to pay off debt owed to the ICBC, contact Smythe Insolvency for a free consultation to learn more about your debt relief options today.

Does ICBC Debt Ever Go Away?

Perhaps you’ve been in an accident and you were found at fault for damages that your insurance does not cover. This can leave you with a large debt owed to the ICBC. As an insured driver, you assume that you’re protected from situations like this, but instead, you’re left figuring out how to pay the ICBC or wondering if there is a way to get out of it. Like any creditor, the ICBC expects to get paid and will apply additional charges as payments are not fully met or missed. This can make an unexpected debt feel insurmountable pretty quickly. There is no debt forgiveness or expiration at the ICBC on money owed to them. It is essentially a government debt that is carried until it is paid in full.

What Happens if I Have Unpaid Debt with ICBC?

Carrying ICBC debt that you’re unable to pay off not only comes with stress and other emotional trauma, but it can affect your future dealings with the ICBC. The next time you visit the ICBC to renew your license or insurance coverage, you will likely be declined if you owe them money. Losing your ability to obtain a driver’s license or insurance coverage could lead to difficulty in reporting to work, missed wages, and a growing mountain of debt. 

Options for Managing Debt Owed to the ICBC

While carrying a large amount of debt with the ICBC is worrisome, there is some good news. Working with the Licensed Insolvency Trustees at Smythe Insolvency, you can have the ICBC debt that you’re owing reduced dramatically. Depending on your financial situation, you have various debt relief programs that will turn what once looked like an impossible debt into a manageable figure you can pay down with fixed monthly payments with no interest. As Licensed Insolvency Trustees, we are officers of the court licensed and regulated by the federal government. Our duty is to work directly with consumers to find suitable options that help get finances under control and settle debts. The two options available for debt relief with the ICBC are:

  • Consumer Proposals: This is a legal agreement that our Licensed Insolvency Trustees negotiate with your creditors. It allows you to settle your debt for only a portion of what you owe, making one affordable monthly payment over the course of five years.
  • Personal Bankruptcy: This is another acceptable form of managing large debts with the ICBC. Once a personal bankruptcy filing is complete, debtors are immediately protected from their creditors and can move forward with paying off their debts.

Our Success Stories

When it comes to the ICBC, you may feel like you don’t have any options or a trusted source to turn to when facing a massive debt from an auto accident. But we’d like to share a story about our client named Jeff. Jeff was involved in an accident where he wasn’t speeding, wasn’t distracted by his cell phone, and wasn’t under the influence of drugs or alcohol. Yet, because of an unfortunate mistake involving a pedestrian, Jeff was burdened with a debt to the ICBC for just over $300,000. With the help of the Licensed Insolvency Trustees at Smythe Insolvency, Jeff’s debt was reduced to $38,500 through a consumer proposal we put together for him. He retained his assets, and the interest from his debt immediately stopped accruing. Take a look at what our other happy and satisfied clients have to say about their experiences working with the professional team at Smythe Insolvency.

What Types of Debt Can Be Included in Insolvency

At Smythe Insolvency, we strive to help more Canadians make the most of their financial future and thrive in their personal lives. Our trusted services provide various options for individuals and families to put a plan into action and get out of debt. ICBC payments aren’t the only type of debt that insolvency options can help manage. Debt from credit cards, money owed to the CRA for income taxes, student loans, and some personal loans are considered unsecured debt that can be included in insolvency. However, there are secured loans and other types of debt that do not qualify. These common types not eligible include:

  • Secured loans such as a car loan or mortgage
  • Spousal support or alimony payments or arrears
  • Court-ordered fines
  • Debts from fraudulent activities

Work with Insolvency Trustees Who Will Be on Your Side

Smythe Insolvency offers different options to reduce the amount of debt you owe. We can even provide two solutions to resolve large ICBC debts that will cease interest rates from building up and offer an affordable payment plan to stay in good standing with the ICBC. As with any government debt, there is no expiry on ICBC debts, so ignoring them will only cause more significant headaches as time goes on. We have over 10 office locations throughout British Columbia and offer free consultations to discuss the best way to handle your ICBC debt. Contact us to book your free consultation today.

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