While bankruptcy can help people eliminate their debt, there are also some bankruptcy alternatives that may be a better fit for you and your financial situation.
Bankruptcy is a serious legal proceeding that should only be used when absolutely necessary. There are times when bankruptcy is your best – and possibly only – option, but it does come along with consequences.
Our team has helped many people through challenging financial times and no matter what led up to your current financial situation, the good news is that you have multiple options when it comes to avoiding bankruptcy.
Budgeting helps you manage your income and expenses, track your monthly spending and pay down your debts. Start by determining how much money you’re making, set aside some for your monthly needs, and use the remainder to pay off your credit card debt or start an emergency savings fund. If your needs outweigh your income, consider calling a Licensed Insolvency Trustee.
A debt consolidation loan can combine several of your outstanding credit cards or bank loans into one loan and payment. These loans often have a lower interest rate, but you’ll still have all your debt. This option can make your payments more manageable.
This type of plan allows you to consolidate your monthly debt payments without needing to qualify for a new loan. This plan may be an excellent option if you only want to consolidate a few small debts or you have poor credit and would not qualify for a low-interest consolidation loan from a traditional lender.
If you have debts that are mainly small and relatively old, you might be able to settle them with your creditors for a lower amount than you owe. In some cases, they will accept about 50% of your overall debt, but it helps to have an experienced insolvency firm to assist you.
With this option, a Licensed Insolvency Trustee will negotiate with your creditors on your behalf. Consumer proposals can help you to negotiate an extremely low settlement. Many times, creditors will accept less because it’s better than getting paid nothing at all, making it a win-win for you and for them.
This option helps you determine the underlying cause of your financial difficulties so you can avoid making the same mistakes in the future. You’ll learn valuable financial management skills, budgeting strategies and more. You’ll learn how to rebuild your credit and get a fresh start financially.