Bankruptcy Alternatives in Scarborough
Bankruptcy may be one of the better known debt-relief options, but it isn’t your only one.
Thousands of people get themselves out of debt every year without needing to declare themselves as bankrupt, and you could too.
Why look at alternatives to bankruptcy in Scarborough?
Before we go any further we just want to clarify that although it’s a good idea to look at alternatives to bankruptcy in Scarborough, the bankruptcy process itself should not be demonized and has helped many thousands of people to wipe their debts clean and to start new lives.
The main reason why it is best to look at alternatives to bankruptcy, before making your decision, is that bankruptcy is quite an extreme debt relief service and is designed for those who have no other option.
During bankruptcy, any eligible assets will be seized to pay for your debts, and even with a clean financial slate, your bankruptcy will still remain visible on your credit rating for between 6-7 years.
There are also a number of debts that are not covered by the bankruptcy process including outstanding child support and alimony payments, secured debts such as your mortgage or a car loan, and student loans that are younger than 7 years.
Taking all of this into consideration, bankruptcy isn’t for everyone, so here are some of the most popular alternatives.
Bankruptcy alternatives in Scarborough
Believe it or not, the government doesn’t want you to be in debt, which is why there are a number of things in place to help you pay back what you owe including:
- Credit counselling.
- Debt consolidation and debt repayment plans.
- Consumer Proposal.
Credit counselling in Scarborough
Credit counselling is an extremely helpful debt-relief service designed to help people who are looking for a way out of debt.
Regardless as to the size or severity of your debt, credit counselling can help you to confront your financial situation, to learn more about the other debt-relief services available to you and to help you put in place measures that will allow you to stay debt-free in the future.
Credit counselling can be used alone or in conjunction with other debt-relief services such as debt consolidation or a Consumer Proposal depending on your personal circumstances.
Debt consolidation in Scarborough
Most people don’t just have one debt, they have several.
Credit cards, loans and bills can quickly add up and before you know it you have dozens of monthly payments to remember and things can start falling through the cracks.
Debt consolidation is designed to help people with multiple debts to consolidate their monthly payments into one, easier to remember and easier to manage, lump sum.
There are a couple of different debt consolidation options available, including taking out a debt consolidation loan which will then replace your multiple debts with one loan repayment often at a much lower interest rate.
Consumer Proposal in Scarborough
Not everyone qualifies for a debt consolidation loan, and if your debts are too high and you will struggle to ever clear them, then you may want to consider talking to your credit counsellor about filing for a Consumer Proposal.
A Consumer Proposal is a legal agreement between you and your creditors and must be filed by a Licenced Insolvency Trustee.
Your Licenced Insolvency Trustee will assess your debts and your finances to put together a Consumer Proposal outlining what payments you can afford to make over the proposed proposal period (up to five years).
Most creditors will accept a Consumer Proposal despite it often meaning that they will not recuperate all that they are owed, this is because a Consumer Proposal is still for them than if you were to declare bankruptcy.
After the agreed proposal period is up, any remaining debts will be discharged and you will be debt-free.
Knowing which debt-relief option to choose
Debt is never a one-size-fits-all problem, and so it can be very difficult for people to know which option best suits their financial situation.
The good news is that we at Bankruptcy Canada are here to help you to understand the bankruptcy alternatives available in Scarborough.
Alongside our extensive range of online resources, we can also put you in contact with one of more than 430 Licensed Trustees who are qualified to provide credit counselling services as well as to file for Consumer Proposal and bankruptcy.
For a no-cost and completely confidential meeting with one of our Licenced Trustees contact us on (877) 879-4770 or by filling out one of our online forms and start your journey to a life that is debt-free.