Bankruptcy Alternatives in Ottawa

Being in debt can feel extremely isolating, but it’s important to remember that you are not alone and that there are services out there designed to help you.

Here at Bankruptcy Canada, we may have the word bankruptcy in our name, but we are in fact specialists in all kinds of bankruptcy alternative debt-relief services including credit counselling, debt consolidation and Consumer Proposal.

Personal Bankruptcy in Ottawa

Although bankruptcy has helped many thousands of people to start new lives as debt-free, personal bankruptcy is still widely seen as a last resort, and so it is important that you know about the other debt-relief options available to you before making a final decision on the way you want to handle your debts.

Reasons why you may want to look at bankruptcy alternatives

The bankruptcy process itself is very different from other debt-relief services, in the sense that your assets, such as your home, are at risk.

This is because during bankruptcy your assets, alongside additional payments if necessary, are what will be used to pay back your creditors and also to fund the bankruptcy process and to pay your Trustee.

As well as potentially losing assets, bankruptcy is also extremely damaging to your credit score and will stay on your credit record for up to 7 years, potentially making it difficult for you to get credit long into the future.

It’s also important to note, that bankruptcy does not automatically wipe out all debts, with things such as your mortgage, car loans, other secured debts, child maintenance payments, alimony payments and student loans, exempt from the bankruptcy process.

So what are the bankruptcy alternatives in Ottawa

If bankruptcy isn’t the right option for you, then the good news is that there are a range of other debt-relief services that can help.

These include credit counselling, debt consolidation and Consumer Proposal.

Credit counselling in Ottawa

Credit counselling is a service designed to help debtors to settle their debts through education and proper budgeting.

Acknowledging and revealing the true extent of your debt is often one of the hardest parts of the debt relief process, but credit counsellors are here to help.

Most credit counselling services are free and subsidized by the government to help debtors get back on track without adding to their financial burdens.

People with varying amounts of debt and at various stages of the debt-relief process can often benefit from speaking with a credit counsellor, who will help them to reveal the true status of their finances, will put measures in place to enable them to pay back what they owe and to educate them about budgeting for a more financially stable future.

Debt consolidation in Ottawa

Debt can very quickly snowball – a missed bill can quickly turn into two or three, a loan may initially seem to help but repayments can become burdensome, and before long when combined with the odd credit card and payday loan, your single debt has spiralled out of control.

It’s not uncommon for people in debt to have multiple debts all requiring payments at different times throughout the month which is not only stressful but difficult to keep track of.

Debt consolidation is designed to help people with multiple debt sources to combine them into one monthly repayment and there are a number of debt consolidation options available.

This repayment is easier to keep track of and is designed to be affordable for the debtor, reducing stress and increasing the chances of them paying off their debt.

Consumer Proposal in Ottawa

Perhaps the most common bankruptcy alternative in Ottawa is to file for a Consumer Proposal.

A Consumer Proposal is a legal agreement between you, the debtor, and your creditors and must be written up by a Licenced Insolvency Trustee.

Unlike bankruptcy, all of your assets remain safe when filing a Consumer Proposal, and instead, you agree to pay monthly repayments to your creditors for an agreed period of time, which can be up to five years.

Once this five year period has passed, so long as you have completed your end of the agreement, your debts will be discharged and you will be debt-free.

A Consumer Proposal will still be present on your credit history but is not as damaging as filing for bankruptcy.

Choosing the right bankruptcy alternative

Here at Bankruptcy Canada, we are experts in all areas of debt, not just bankruptcy, and can help you to choose the right debt-relief option for your personal situation.

We have a network of more than 430 Licenced Trustees who are ready and waiting to provide you with a completely free and confidential meeting to discuss your debt.

At this meeting, your personal Trustee will help you to understand the options available to you and will advise you on the best route to take in order to clear your debts.

To find out more and to be matched with an experienced Licenced Trustee near you, call  (877) 879-4770 or fill out one of our online forms.