Bankruptcy Alternatives in Smiths Falls
Did you know that you don’t always have to declare bankruptcy to manage your debts?
There are, in fact, a whole range of alternatives to consider.
Something well worth knowing as there are some significant downsides to declaring yourself bankrupt.
Keep reading to find out more.
The downsides of the bankruptcy process.
One of the most significant issues with bankruptcy is how long it can take.
In fact, the entire process can take around 9 months if your case is a simple one.
Unfortunately, many people’s bankruptcy cases are not simple.
This is because they can be queried by those to whom you owe money and the trustees that you are working with to file for bankruptcy.
Even the Canadian government in the guise of the Office of the Superintendent of Bankruptcy can query the process.
Complicated cases often require mediation and court intervention.
Something that can seriously extend the time unto your bankruptcy can be fully discharged.
The process of bankruptcy is not passive for those involved either.
The reason for this is that various tasks will need to be completed that goes far beyond just filling out paperwork.
One of these is the often tricky surrendering of assets to your trustees.
Something that will allow them to sell these and so pay off some of your outstanding debt.
Then, there are also the financial counselling sessions that you will be required to attend during the process of bankruptcy.
The aim of these being to help make sure that you do not find yourself in the same position again.
The three debts your bankruptcy won’t cover.
Another major issue you need to be aware of before you choose bankruptcy is that it will not cover every debt you have.
In fact, there are three debts in particular that you will still be responsible for, even if your bankruptcy has been discharged:
- Student loans.
- Spousal and child support.
- Secured loans such as mortgages.
Unfortunately, many people are entirely unaware that bankruptcy will not cover these types of debts.
Thus leading them into making a poor decision as to which debt management option is best for their circumstances.
The impact of bankruptcy on your credit rating.
Finally, before choosing to go down the bankruptcy route, you need to know that doing so can have a lasting effect on your credit rating.
This is because a note will be placed on your credit account for around 7 years, which will lower your score.
Therefore making it very difficult to gain access to new loans or renew the ones you already have.
This even affects secured loans such as mortgages and so can have a massive impact on your life.
If bankruptcy is not the answer, what is?
With all the downsides that come with bankruptcy, it is good to know that it is not the only debt management option.
In fact, you may wish to choose from one of the following alternatives instead.
The first to consider is a debt settlement.
This option entails a financial provider arranging for you to only pay back some of what you owe to clear your debt.
The second choice is to opt for consolidation or a debt repayment plan.
This involved a provider amalgamating all of your debts into a single sum and place.
This then allows them to charge you a more reasonable monthly rate while you continue to pay your debt down.
Finally, you may wish to opt for a consumer proposal.
This is an option available in Canada that is quite like bankruptcy but does not have so many drawbacks.
In particular, you may be able to pay back just part of what you owe rather than the whole amount.
Which debt management option is for me?
Mind boggled by all the debt management options out there?
Well, you are not alone.
Many people find this whole area, one that is confusing and stressful to navigate successfully.
The good news is that there are people that sail in these waters every day.
Experts that can help you make sense of your situation, and find the debt solutions that work best for your individual circumstance.
Of course, when it comes to getting advice on debt, you must always look for not-for-profit providers.
The reason being theft can provide you with information and advice that is objective and reliable.
Therefore, no matter what your query about Bankruptcy Alternatives in Smiths Falls, give us a call today on 1-877-879-4770.
Alternatively, you can complete the enquiry form below, and we will get back to you with non-judgmental and non-partisan answers to your questions.
You’ll be glad you did.