Bankruptcy Alternatives in Fort Erie

Are you struggling with debt problems in Fort Erie?

If so, bankruptcy may seem like an excellent option for you.

It’s a way of relinquishing your unsecured debts and getting a fresh financial start.

You can get creditors off your back and finally get a good night’s sleep again.

However, personal bankruptcy might not be the best option out there.

Did you know there are plenty of bankruptcy alternatives in Fort Erie?

It’s true, and there’s a debt-relief solution for everyone and every situation.

Bankruptcy Explained

Bankruptcy is a legal process by which an individual can remove the majority of unsecured debts from their record.

Effectively, you default on your loans because you can no longer pay them.

The entire process must be handled by a Licensed Insolvency Trustee, and you end up with a clean slate.

This is the main advantage of bankruptcy: it’s a way to get rid of debts and no longer have to deal with all the stress they bring.

However, it comes with a few drawbacks:

 

  • There’s a fee you pay for a bankruptcy service.
  • You have to attend credit counselling meetings before being discharged.
  • Bankruptcy stays on your credit report for 6 years (this can be increased to 7 years depending on the credit bureau, and subsequent bankruptcies remain on there for 14 years).
  • It doesn’t include a variety of debts, such as secured debts, student loans (that are under 7 years old), and support payments.
  • Some credit card companies also don’t allow you to get rid of recent credit card debt via bankruptcy.
  • May have to sell some of your assets if you have too much equity in them (this helps pay your creditors as much as possible).

 

Bankruptcy is a solution, but it’s not something you should eagerly seek out.

The whole process can be long and stressful, even though you do get some relief on the other side.

You only need $1000 of debt to file bankruptcy in Fort Erie.

However, it’s recommended that you seek out some bankruptcy alternatives before resorting to this option.

Bankruptcy Alternatives in Fort Erie

It’s very easy to feel like you have no answers to your debt problem.

Every month, it feels like you accumulate more and more debt, leading to a spiral that you can’t get out of.

Bankruptcy can feel like the only option, but it’s well worth trying these out first:

Debt Consolidation

Debt consolidation is the process of merging your debts into a loan.

With your new loan, you can pay all of those debts in one go.

It is one of the best options for people with lots of different debts, especially if you’re struggling to make payments on all of them.

Consolidate your debts into a loan, then all you have to worry about is paying off the debt consolidation loan.

These loans are designed to favour the borrower as the interest rates are low and repayment plans are flexible.

Debt Repayment Plan

This is sometimes called a debt management plan or debt restructuring.

The concept is that you negotiate with creditors to agree on a better repayment plan.

It can lead to a reduction of monthly payments, completely wiping out interest rates, or extending the loan term.

In effect, you change things to make it much easier for you to repay the debts you owe.

Debt Settlement

Next, you have an option for individuals that may never be able to repay the full debt.

Try as you might, it’s simply not in your budget to cope with all the money you owe.

Instead of filing bankruptcy, you can engage in a debt settlement agreement with creditors.

Here, you agree on a lump sum to pay your creditors as a way of settling your debts.

Yes, they don’t get all their money, but it’s more than they’ll get if you go bankrupt.

Consumer Proposal

This is like a debt settlement but slightly more extreme.

It’s a legal alternative to bankruptcy where you make monthly payments to repay a portion of your debts.

So, you don’t repay everything you owe – because you can’t – but you agree on monthly payments.

Again, some creditors will accept this as the best solution because they can get more money than if you choose bankruptcy.

Get Debt-Relief Help Today!

Which of these options is right for you?

As debt-relief specialists, we’ll help you find the ideal bankruptcy alternatives in Fort Erie.

By analyzing your financial situation, we’re able to figure out what steps make sense for your situation.

It all starts with a consultation, so give us a call or fill in our online form today!