Bankruptcy Alternatives in Belleville

Are there any bankruptcy alternatives in Belleville?

If you’re in debt, you’re probably living in fear every single day. That sounds overdramatic, but it is the case for many Canadians suffering from financial problems. You worry that your debts will continue to rise to the point where they are unassailable. When it gets to that point, you fear that bankruptcy is the only option. 

To answer the initial question, there are many bankruptcy alternatives in Belleville! As debt-relief experts, we’ve discovered there is a solution for everyone out there. Even if it seems like bankruptcy is the only option, you will be surprised to learn how many other ideas present themselves.

 

Debt Consolidation

This is one of the fist alternatives we recommend to many individuals who contact us for debt-relief services. Debt consolidation helps you pay off your debts by using a loan. You calculate the total amount of debt, apply for a loan, then use it to pay your creditors. It’s a smart way of paying your debts in a very short space of time.

The advantages of this are that you get creditors off your back, you avoid selling your assets, and you can save a fortune. Debt consolidation loans tend to have far more favorable interest rates than what you’re already paying. Therefore, it costs less to repay the loan than it would to repay all your debts one by one.

 

Debt Management/Debt Restructuring

The next bankruptcy alternative involves a bit of negotiating with creditors. Here, you talk about restructuring debts to make them more manageable. A common outcome is that creditors will waive the interest fees on your repayments. This can significantly reduce how much you pay every month. Just like that, your debts become easier to handle. You can now pay off the debt based on the new terms, and everyone is happy. 

 

Debt Settlement

Most people think of settlements with regard to lawsuits. When someone is sued, the parties agree on a settlement that gets paid. A similar thing happens here, but there are no court proceedings involved. Instead, you speak to your creditors and offer a debt settlement. This is a lump sum that you can afford to pay them. If they accept your settlement, you pay the sum, and the rest of your debt gets defaulted. 

 

Why would a creditor agree to this? A creditor can lose a large sum of money if they accept a debt settlement. However, they weigh this against the alternatives – which will be either a consumer proposal or bankruptcy. In both of these cases, they will likely get even less money from you. So, if your settlement offer appeals to them, they will accept it. 

 

Consumer Proposal

A consumer proposal is a legally binding process that is administered by a Licensed Insolvency Trustee. In this sense, it is quite similar to bankruptcy. A consumer proposal will also stay on your credit report after completion, but for half the time that bankruptcy will. 

 

The purpose of a consumer proposal is to develop an offer to pay creditors a portion of what you owe them. If they accept, you agree to specific terms that let you pay them in installments. It is similar to a debt settlement, only legally binding and easier on your finances as you can pay monthly. 

 

When does bankruptcy make sense?

All of the above points show you how many bankruptcy alternatives exist. So, why does bankruptcy make sense? Generally, it only makes sense if none of the alternatives will work. Perhaps you’re too far in debt for restructuring or consolidation to work? Or, maybe your creditors won’t agree to your settlement or proposal. In these scenarios, bankruptcy is often the only way you can get rid of your debts.

 

Be warned, bankruptcy won’t help you get rid of secure loans, student loans, or support payments. If these are the things causing you issues, you’re better off seeking out alternatives to bankruptcy.

 

Contact Us For Debt-Relief Guidance in Belleville

Don’t suffer in silence if you’re in debt. Take action to grab control of the situation and recover your financial stability. As Licensed Insolvency Trustees, we can help you with any legal processes relating to debt-relief. This includes bankruptcy and consumer proposals. However, we will also help you discover the best bankruptcy alternatives in Belleville for your personal situation.

 

Call us today – or fill in our online form – and we can arrange a consultation. From here, we can assess your finances and put you on the perfect path to pay off your debts.