Bankruptcy Alternatives In Regina

Before you take the drastic step and file for bankruptcy, it’s worth your time to review alternatives that may be more suitable for you. Discovering all your options that can keep you from bankruptcy will help you get back on the right financial track.

The first thought that might pop into your head when you’re struggling to pay off debt and your bills is bankruptcy. However, be glad to know that there are Bankruptcy Alternatives in Regina that will also help you get back on your feet and in a better financial place. You need to inform yourself about how the bankruptcy process works and what it will mean for you and your family in the future before making a decision. Educating yourself about what alternatives are available could help you to avoid making a big mistake that you may later regret.

Bankruptcy in Detail

It’s essential that you not assume that your situation is a good fit for bankruptcy until you know the details and what is and isn’t included. While it may be possible for some, it’ll all depend upon your situation and what types of debts you’re talking about.

3 common types of debt that aren’t included in a bankruptcy are:

  • Secured debts, like a mortgage or car loan.
  • Student loans that are less than 7 years old.
  • Child and alimony support payments that you’re behind on.

There are procedures and policies you must follow when filing for bankruptcy. Not only can it take up to nine months for all to be complete, but there are also fees you must pay and counselling sessions you’ll need to attend. Your bankruptcy trustee, your creditors, and the Office of the Superintendent of Bankruptcy or the Court can oppose or delay your discharge as well. Also, it’ll have a significant impact on your credit rating, and it might make it challenging for you to obtain credit later on.

Learn more about the Bankruptcy Alternatives in Regina so you can choose which option or options will help you out the most.

Consolidation & Debt Repayment Plans

One alternative to contemplate and discover more about is consolidation and debt repayment plans. It may be a familiar term for you if you’ve considered or used debt consolidation in the past when combining bills or other debts into a new loan. If you have a stable working budget, it may be a good option for you. However, it may make more sense to consolidate your monthly payments only. There are several types of debt consolidation to consider, so don’t worry if your lender has already turned you down.

You don’t borrow more money when you decide to consolidate your payments. Therefore, having bad or poor credit is never an issue. A debt management program with a non-profit credit counselling organization works in this way. Creditors will work with you to lower or waive ongoing interest charges. You’ll be saving thousands of dollars as you work to repay your debts. You’ll be able to afford the payments because what you owe will be based on your budget.

Debt Settlement

Consolidation programs and loans can help if you want to focus on paying back what you borrowed. You may think that you have to walk away from your debts and go bankrupt because you aren’t sure what to do. However, you should think through the alternatives such as debt settlement before jumping to conclusions. Paying back part of what you owe can also be a viable solution for your situation. A debt settlement offers your creditors a lump sum of money when appropriately handled. While it may seem impossible initially, you may come to realize that you can move forward with this option based on your circumstances.

Consumer Proposal

You should also consider a consumer proposal when thinking about Bankruptcy Alternatives in Regina. It’s a legal alternative to bankruptcy that you might find quite attractive of a path to take. Your consumer proposal will be set up by a trustee so you know you’ll be in good hands. You’ll be required to make monthly payments to repay part of what you owe if agreed to by your creditors.

Making A Decision

Your situation plays a significant role in helping you decide which bankruptcy alternative will be a wise choice for you. Instead of focusing on how many bills and how much debt you have to pay back, reach out and get a fresh set of eyes to look over your finances. We encourage you to contact a qualified debt and credit counsellor to help you draw up an appropriate plan.