Bankruptcy Alternatives in Lindsay
Do you really need to claim bankruptcy?
Claiming bankruptcy is often considered a last resort when it comes to dealing with a difficult financial situation.
Claiming bankruptcy in Lindsay, Ontario can actually leave you with many of your most important possessions, such as your car and important work equipment, which allows you to continue working and build up your financial independence.
Unfortunately, claiming bankruptcy can leave a mark on your credit report which makes it difficult for you to seek a mortgage or get a personal loan in the future.
In addition, there are certain types of debt that aren’t erased during bankruptcy, such as:
- Secured debts, such as a mortgage or car loan.
- Student loans that are less than 7 years old.
- Child and alimony support payments that are not up to date.
In addition, creditors may also block your bankruptcy claim if you’ve built up a large credit card bill.
You’ll need to pay this off before you can proceed with your bankruptcy claim, and there may be several delays depending on the number of creditors you owe.
The bankruptcy process isn’t as simple as you think
Many people assume that claiming bankruptcy just means filling out a form and handing it to a trustee.
Unfortunately, the entire bankruptcy process can take a minimum of 9 months in certain cases.
There are also a number of costs and fees associated with the process, and you’ll also need to attend counselling sessions that are designed to educate you on proper budgeting and credit management.
There may also be a number of delays depending on how much you owe and to which creditors.
In some cases, your bankruptcy claim may also be delayed by your trustee, creditors, the court or even the Office of the Superintendent of Bankruptcy.
You may also need to attend a hearing, answer questions under oath or meet certain criteria before your bankruptcy is discharged.
So what are the alternatives to bankruptcy in Lindsay?
It’s possible to solve your debt problems without resorting to bankruptcy.
- Debt consolidation allows you to consolidate all existing debts into a single loan with a lower interest rate.
- Debt settlement allows you to pay back just a portion of your debt to creditors instead of the full amount.
- A consumer proposal allows you to reduce your debts and then pay back the remainder. This could lead to around 80% of your debt being removed and the remaining 20% can be paid back in monthly installments.
The ideal option for your situation will depend on your financial circumstances.
These alternatives are all fantastic options, but it’s a good idea to understand their nuances to see which could offer you the biggest savings and best chance of fixing your financial situation.
If you’d like to learn more about bankruptcy alternatives in Lindsay, don’t hesitate to contact us today.