Private Capital Support for Consumer Proposals, Bankruptcy Filings, and Financial Turnarounds
Assadi Private Capital provides secured, short-term mortgage financing to borrowers navigating insolvency, restructuring, and post-discharge recovery. We lend directly, using our own capital, and we do so exclusively through licensed professionals, including Licensed Insolvency Trustees, restructuring advisors, mortgage brokers, and legal counsel. We do not work directly with the public and do not solicit borrowers referred to us by trustees or advisors.
We understand that insolvency files often require practical financial solutions that fall outside the capacity or timing of institutional lenders. Our role is not to replace the function of banks or structured proposal plans, but to complement those frameworks with responsive, asset-based capital where appropriate. Whether a client is actively in a consumer proposal, recently discharged from bankruptcy, under financial review, or facing imminent foreclosure or judgment, our objective is to provide time-limited liquidity that supports a viable financial outcome.
We fund 1st and 2nd mortgages on real estate across Canada, residential, commercial, or mixed-use, so long as the legal title is clear and the proposed exit is credible. We do not require pristine credit, traditional income verification, or banking-grade financial ratios. Instead, we lend based on the asset value, the clarity of the proposed use of funds, and the involvement of a regulated professional. We have extensive experience lending on files involving previous defaults, arrears, writs, or registrations by CRA, creditors, and past lenders.
Trustees and advisors engage us in several recurring situations:
• A consumer proposal is being finalized or amended, but the debtor requires short-term capital to prevent foreclosure, pay property tax arrears, or buy out co-owners
• A bankrupt individual has been discharged but cannot access institutional financing to refinance retained property
• A proposal or bankruptcy estate includes real estate with net equity that should be preserved or maximized for creditors
• A restructuring business owner holds personally owned real estate that can be leveraged to create operating liquidity
• A secured loan is required to settle priority claims or judgment debts ahead of refinancing or asset sale
• A debtor in arrears has sufficient equity but cannot access refinancing due to unresolved credit reporting or recent insolvency discharge
In these scenarios, banks will not typically fund, and Mortgage Investment Corporations (MICs) often decline the file due to internal thresholds, policy restrictions, or reputational concern. Our position is different. We underwrite files based on the practical question: is this a recoverable borrower with real property value and a credible short-term exit? If so, we are willing to fund.
We typically lend between $30,000 and $500,000, though smaller or larger amounts can be considered based on context. Our loans are interest-only, short term (generally 6 to 18 months), and can be structured with full prepayment flexibility. We are willing to consider pay-outs from proposal proceeds, sale timelines, inheritance settlements, or planned institutional refinancing post-discharge.
From a trustee’s perspective, we are deliberate and discreet. We are not interested in long-form credit assessment or borrower interviews. We ask only for a summary of the situation, a copy of the relevant proposal or court materials (if applicable), a title search, and confirmation of professional engagement. We review files quickly, often within 24 to 48 hours, and can issue conditional terms in that timeframe. Most loans are funded within five to seven business days of legal readiness.
We understand that trustees and restructuring professionals must protect their independence and uphold statutory responsibilities. We respect those obligations and operate accordingly. We do not engage in client-facing activity unless specifically instructed, and we do not interfere with the terms or direction of the proposal, bankruptcy estate, or restructuring plan. Our role is to provide practical, time-bound funding with limited friction.
We also understand the reputational considerations that trustees and their professional partners must manage. We fund responsibly, we document clearly, and we avoid over-leveraging the debtor or impairing restructuring options. If the deal cannot support a clean exit within a reasonable timeline, we will decline. We do not seek to entrench borrowers or frustrate trustee mandates.
If you are a Licensed Insolvency Trustee or advisor managing a file where real estate-backed liquidity may improve the overall outcome, whether for the debtor, creditors, or the estate, we welcome the opportunity to speak. You may submit a file overview through a broker or directly through our intake process. We are happy to provide an opinion on structure and scope without obligation.
At Assadi Private Capital, we believe that private lenders, when properly aligned with professional mandates, can play a constructive role in financial recovery. We are not a fit for every situation, but where we are the right fit, we move quickly, respect the process, and execute professionally.