Bankruptcy Alternatives in Fort Saskatchewan

If you are worried and stressed about your debt situation, and if you are finding it increasingly difficult to cope financially, don’t despair. There are debt solutions available to you, and while you might assume bankruptcy is the only possible answer, it is important to know that there are bankruptcy alternatives in Fort Saskatchewan.

These alternatives might be better than bankruptcy too. By considering them, you will have the opportunity to:

  • Avoid losing some of your personal assets.
  • Create less damage to your credit score.
  • Avoid the fees that are associated with bankruptcy.

Of course, bankruptcy isn’t always possible anyway. Certain debts, such as those associated with mortgages, unpaid alimony payments, and student loans that are less than 7 years old, can’t be eliminated through bankruptcy.

Let’s consider the alternatives then, as one of them could be the answer to your particular debt situation.

Bankruptcy Alternatives in Fort Saskatchewan

There are a number of bankruptcy alternatives in Fort Saskatchewan open to you, and these include the following.

 

Refinance what you owe with a debt consolidation loan

 

If your credit score is still in good shape, this is one option that is available to you. 

 

Banks, credit unions, and other finance companies may be willing to offer you a debt consolidation loan if you are eligible. 

 

By reorganizing all of your debts into one easier-to-pay loan, you will say farewell to your other creditors, benefit from reduced interest, and have the opportunity to budget your finances better.

 

You will also experience the peace of mind that comes from knowing that you have an end date in sight, so there will be no more worrying about when your debt problem will come to an end.

 

Consider a debt management plan

 

If you don’t want to take out another loan to consolidate your debts, you might prefer this option.

 

A non-profit credit counselling agency can organize this plan for you, and they will liaise with your creditors. By going down this route, you make monthly payments to the agency and they will pass these on to your various creditors.

 

This option is ideal if you don’t want to don’t qualify for a debt consolidation loan, and if you have a few small debts that you want to consolidate. 

You need to be committed to financial change, however. You will be required to cancel your credit cards and you will need to keep up with your repayment plan. If you don’t uphold your end of the agreements made with your creditors, they may decide to stop the debt management plan they have agreed with you.

 

Eliminate most of your debts with a consumer proposal

 

If you have debts between $1000 and $250,000 (excluding those associated with a mortgage), this is one option that is open to you.

 

You will need to contact a Licensed Insolvency Trustee, as they are only the people with the authority to file a consumer proposal for you.

 

Unlike bankruptcy, you won’t lose your assets when filing for a consumer proposal, and there are no fees attached. You will have to pay back some of what you owe to your creditors, but if there is anything left to pay after 5 years, your debts will be written off. 

 

A Licensed Insolvency Trustee will work you on a repayment plan. They will then contact your creditors on your behalf and put forward the consumer proposal to them. If accepted, it will become a legally binding agreement, so you will have to stick to your payment schedule. If you miss payments, your creditors might decide to end the terms agreed between you, and you will be asked to make payments that eventually cover the loan in full.

 

Your credit score will be negatively affected if you opt for a consumer proposal, but only for the duration of the proposal and 3 years after. Despite this, you might still consider this option, as you will be able to eliminate the majority of your debt and have the opportunity to escape financial stress through lower repayments.

 

Get In Touch

 

We have outlined just a few of the bankruptcy alternatives in Fort Saskatchewan, but to find out more, get in touch with us. At Bankruptcy Canada, we have years of experience helping people in all kinds of debt situations, so don’t hesitate in calling us. Fill out this form to arrange a free consultation with a trustee or call us at (877) 879-4770. The sooner you get in touch, the sooner you will start your journey towards a debt-free life.