Bankruptcy Alternatives in PEI
How to Avoid Bankruptcy in PEI
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What are the Bankruptcy Alternatives In PEI?
When you seek help early, you will find that you have more options available to you than bankruptcy. At a stage when paying back your debts is still possible, you might want to consider the following.A Debt Consolidation Loan
A debt consolidation loan is an excellent bankruptcy alternative in PEI. By reorganizing your debts into one easier-to-pay loan, you will have fewer creditors to worry about and have the chance to pay off more than just the interest on your loan. Consolidation loans have an interest of around 10%. When compared to the interest usually heaped upon store cards, credit cards, and payday loans, this is certainly more cost-effective, and so you should have the opportunity to clear your debt faster. Another advantage of a debt consolidation loan is that your credit score will be positively affected. This is because you will have effectively paid off your other debts with the new loan. However, it is worth noting that if your credit score is currently very low, you may be turned down when applying for a consolidation loan. If so, there are other options available to you, so don’t despair.A Debt Management Plan
A debt management plan forms the basis of an informal agreement you make with your creditors to pay off your debts. If your creditor is in agreement, you will have the opportunity to pay off your debts through reduced monthly payments, and in some cases, you might be able to reduce or eliminate the interest that you were paying on the loan. A debt management plan is not legally binding, so it won’t appear on any public register. This means nobody else needs to know about your debt unless you tell them. However, because it isn’t legally binding, the creditor could pull out of the plan at any time, although if you stick to the payment plan you have agreed upon, they are unlikely to do this. You are free to arrange your own repayment plan with your creditors, but as our experts at Bankruptcy Canada have experience of negotiating with a range of creditors, you might want to consider our services to ensure you get a fair deal. You should certainly consider this option if you don’t want to enter into another loan. Be aware that it might take you longer to pay off your debts with this option as you will be making reduced payments. Although if the creditor does freeze the interest, you will make more headway into paying off your debt, so you won’t be stuck making payments forever.A Consumer Proposal
Unlike a debt management plan, a consumer proposal is a legally binding debt settlement agreement. For this option, you do need to work with a Licensed Insolvency Trustee, as they are licensed to handle this method of debt relief. With a consumer proposal, you will agree to repay a percentage of what you owe to your creditors. This is an excellent bankruptcy alternative in PEI, as it means that you won’t be forced to pay back the entirety of your debt, and you will be free of your debt within 5 years. Acting as the administrator, your Licensed Insolvency Trustee will help you review your financial situation, and will discuss with you the amount of money you should be able to repay each month. They will then contact your creditors on your behalf and present the consumer proposal to them. If they are in agreement, interest and fees on your loan will be waived, and your repayment plan will begin. Be aware that you will be in a legally binding agreement with your creditor. If you fail to stick to the payment plan set, the agreement could be revoked, and should this occur, you would be liable to pay back the full debt again. We will work with you to ensure the repayments are affordable for you, however, and with the budgeting plan we will support you with, you should be able to keep up with your payments. A consumer proposal will remain on your record for the duration of your repayment plan and for 3 years following your last payment. However, as you won’t have to surrender your assets, this is still a favourable alternative to bankruptcy.Contact Us
To learn more about the bankruptcy alternatives in PEI, get in touch with our licensed team of trustees at Bankruptcy Canada. We will discuss the various options with you, including the possibility of bankruptcy, and will work with you to determine what the right debt solution is for you. Call us at (877) 879-4770 or use this form to arrange a free consultation with a Licensed Trustee in the PEI area. The sooner you get in touch with us, the sooner your journey towards a debt-free life will begin.BANKRUPTCYCANADA
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I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.
During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.
Geoffrey,
Toronto