Bankruptcy Alternatives In Moncton
The thought of filing for bankruptcy may be scary for you but maybe all you know when it comes to dealing with debt. However, the good news is that there are Bankruptcy Alternatives in Moncton that may be a better course of action for you. Discover the many choices you have that might leave you in a stronger financial position in the end over filing for bankruptcy.
Consider the fact that when you file for bankruptcy, a notification will be placed on your credit report and remain there for more than six years past your discharge. It’s in your best interest to explore other alternatives that will help you to avoid the unwanted consequences that come with filing for bankruptcy. You’ll thank yourself later on for putting in this hard work and educating yourself since there’s still a chance you can overcome your debt obstacle and find financial freedom.
A Consumer Proposal
One of the most popular alternatives to bankruptcy is called a consumer proposal. It’s a legal agreement that is governed by the Bankruptcy and Insolvency Act. The same as if you were filing for bankruptcy, you’ll need to get the assistance of a trustee. He or she will take the necessary steps to administer the consumer proposal instead of filing a bankruptcy. The pros may outweigh the cons, but you’ll need first to review your specific circumstances to see if this holds true for you. You should expect a debt repayment plan over three to five years, and your creditors must accept the consumer proposal for you to move forward.
- Pros – Filing a consumer proposal can significantly reduce the amount you owe to your creditors. You will also be able to keep all of your assets that would be lost in bankruptcy. It does not impact your credit score as severely as a bankruptcy does. It usually produces an R7 rating while a bankruptcy produces an R9 on your credit report.
- Cons – You must be able to afford a viable proposal to your creditors. In the eventuality that you do not pay regularly, you might be required to file for bankruptcy.
Selling Some Assets
You might decide to take a look at your assets and sell some of these before jumping into bankruptcy. It’s a preferable choice because you get to decide what you want to sell. Your debt problem can be solved quickly if the money you receive from the sale of those assets can cover your debt.
Obtaining A Debt Consolidation Loan
You can also add obtaining a debt consolidation loan to your list of Bankruptcy Alternatives in Moncton. It may be worth your efforts to find a creditor willing to offer you a debt consolidation loan so you can avoid bankruptcy and tarnishing your credit score. You should be aware that the total amount you’ll have to pay will exceed your initial debt. However, this won’t be an issue because it’ll be negotiated according to your financial standing and for a longer period allowing you to pay your monthly dues easily.
You might also want to think about reaching out to your creditors to see if they’d be willing to help you make alternative arrangements with you. You won’t have to involve a trustee or file for bankruptcy this way and may find it to be advantageous for you.
Debt Management Program
Another option is to choose to work with an institution that can offer you a debt management program. It’s similar to working with a trustee, except that it’s not a legal, regulated solution. The debt management program helps you to manage your income better. You’ll sit down and discuss your income and expenses and determine where you may be able to reduce your spending. It’ll help you to be able to stay on track with paying your bills when they are due instead of getting behind.
Taking the Leap
These are a few useful and practical Bankruptcy Alternatives in Moncton that may spark your interest, depending on your situation. You may still have questions or will appreciate having another set of eyes take a look at the full financial picture for you. In this case, it’s a wise idea to reach out to the experts at Bankruptcy Canada and let them review your circumstances and weigh in on what option is the best course of action for you. With years of experience and many attractive products and solutions, you’ll be on your way to solving your debt problems and discovering what it feels like to be financially free.