Bankruptcy Alternatives In Montreal

Before you decide to go ahead and file for bankruptcy, you should stop and ask yourself if this is your only option. What you’ll likely discover is that it’s not and that there are desirable Bankruptcy Alternatives in Montreal to consider.

Bankruptcy in Canada is the last resort and should only be used when you look through all your choices and discover there are no other options for you. Take the time to review all the alternatives and what they entail so that you can begin to narrow down your choices and come up with a plan that is appropriate, given your circumstances. It can be stressful when you have collectors calling non-stop, and you can’t pay your bills. However, it’s no reason to make a rash decision without first thinking through all the possibilities and alternatives.

Replay Your Debts Yourself

Review your debts and their sizes and know exactly how much you need to pay off in total. If they’re small and you can cut back your expenses for a while, you may be able to repay your debts within a reasonable timeframe yourself. Do your homework and gather insights and information about strategies that work when it comes to reducing debt on your own. It’s vital to remember that missing payments will have a negative impact on your credit report and set you back even further. More formal action may be required if you’re always getting behind and unable to keep up.

Get A Debt Consolidation Loan

When considering Bankruptcy Alternatives in Montreal, you might also want to add getting a debt consolidation loan to your list. It’s possible you can combine your unsecured debts into one single debt consolidation loan. It might be the best way to go if you still have a decent credit history and assets you can use to secure the loan. Consider whether or not you can lower your interest rates and pay off the debts you have within a couple of years. If so, then this may be a good option for you.

Try Credit Counselling

Credit counselling or a debt management plan is another alternative to add to your list of considerations. When choosing a debt management plan, your credit counsellor will work with you to replace your multiple payments with a single payment you’ll make each month. An upside is that interest costs and rates are usually forgiven as part of a debt management plan. The one aspect to keep in mind is that under this option, you’re still going to have to pay back your debt in full. It’s a form of negotiation that will require you to take care of your debts, and you’ll continue to be held responsible for them.

Make A Proposal to Your Creditors

Another scenario may be that you review your debts and come to realize that they’re too large for you to repay them. However, you may still want to try to avoid bankruptcy. In this case, a consumer proposal may be the way to go. How it works is that a bankruptcy trustee will make a proposal to your creditors to settle your debts for less than what you owe. Your trustee is also called a consumer proposal administrator, and you’ll work with them to pay off the money. The process will require you to make one, lower, monthly payment to your trustee typically over three to five years. It’s an excellent alternative to bankruptcy that you should consider if you have a stable source of income and are confident that you can continue to make the payments in a timely fashion.

Next Steps

Filing for bankruptcy is a significant decision that will impact your finances now and in the future. You may be quick to assume that this is your only choice, but you should now see that many attractive alternatives out there can help you find financial freedom once again. One or more of these Bankruptcy Alternatives in Montreal may be exactly what you need to get yourself out of debt and back on the right track.

Consider reaching out to a bankruptcy trustee so that you can get help and an objective perspective on your situation. A professional can advise you about which option or options are best for you based on your circumstances, so you have no regrets later on. Be glad to know that there are ways to eliminate your debt and avoid bankruptcy if you do your homework and are willing to take a calculated risk about how to proceed.