Bankruptcy Alternatives In Halifax

You may be quick to assume that bankruptcy is your only option when you’re having trouble paying your bills and paying down debt. However, you should know that there are Bankruptcy Alternatives in Halifax that may be a more fitting solution for you and your situation.

You must understand all the alternatives in detail before you make a final decision and decide to file for bankruptcy. How to deal with your debts is a tough decision that you shouldn’t take lightly. Use this as a time and opportunity to explore your choices so you can avoid bankruptcy and having your credit take a huge hit.

Do Nothing

It’s always an option for you to choose to do nothing about your money problems. It would be a suitable option if you’re not working and don’t have any assets to protect. Your creditors can’t garnishee wages that you don’t have or take assets that you don’t own. However, be aware that this option won’t solve your debt problems and make it go away. The upside is that it doesn’t cost you anything to do nothing.

Get A Debt Consolidation Loan

When looking over Bankruptcy Alternatives in Halifax, you might want to add getting a debt consolidation loan to your list. You can then use the money to repay your debts. The reality to keep in mind is that you’re not lowering your debts with this choice. You’re simply trading one debt for another. It might be worth your while mainly if you can borrow at a low-interest rate (maybe with a second mortgage). You can then use the money to pay off high-interest rate debt, such as credit cards.

Opt for A Debt Settlement

You can also throw into the mix choosing to do a debt settlement instead of filing for bankruptcy. You need to look at the age of your debts and how long you’ve had them. Your creditors may consider accepting a lump sum payment of 50 or even 20 percent of the amount owed if your debts are old. It’s a wise option and will work best if you have a lump sum of money you can use. However, be mindful of the fact that your credit is still damaged.

Attend Credit Counselling

Credit counselling, which is also known as a debt management plan, is another possible route you may want to take. A non for profit credit counsellor will configure a debt management plan for you. It’ll entail you repaying your debts in full, but with a zero or low-interest rate. You might want to strongly consider choosing this option if you have a manageable level of debt you’re dealing with. It’ll provide you with a break on the interest, which will then make it possible for you to pay down your debt. It’s most useful when you’re talking about bank loans and credit cards and least effective in relation to income tax debts and other government debts.

File A Consumer Proposal

Furthermore, you might decide that filing a consumer proposal is an excellent bankruptcy alternative. It’s a wise choice if you have more debt than you can reasonably repay. For instance, if you’re dealing with the following, such as bank loans, credit cards, tax debt, and payday loans looming over your head. You deal with all of your debts at one time by agreeing to one reasonable monthly payment. Your money problems can be solved with a consumer proposal if you have a good income and assets you would like to protect.

Making A Decision

Now that you know what options are available to you when it comes to Bankruptcy Alternatives in Halifax, it’s time to think it through and make a decision. It can be a complicated matter that may have you feeling a bit overwhelmed or confused about how to proceed. For this reason, you should consult with a licensed consumer proposal administrator and bankruptcy trustee who can walk you through the most practical choices based on your situation. You’ll feel a lot better having another set of eyes on your finances and someone on your side who’s able to offer an objective opinion about how you should proceed.

At Bankruptcy Canada, we understand how challenging of a time this can be for you and want to help. Reach out today and get in touch so we can work together to come up with a plan that will allow you to pay off your debts and get you back on your feet. We can answer all your questions and ensure that you walk away with a fresh financial start.