Help, I'm Drowning in Debt! - Bankruptcy Canada
Drowning in Debt
That sinking feeling you get when you’re drowning in debt does not discriminate, it affects everyone. The important thing to remember is, you aren’t alone – we are here to help you figure out the best way to get your finances back on track. If you’re in a situation where we can’t assist you directly, we’ll be able to refer you to someone, so whatever position you find yourself in, we can help.
How can we help?
We created Bankruptcy Canada to assist people who are struggling with their debt. Setting a pathway early is crucial to achieving success. As such, we pride ourselves on early intervention, which puts you in the best position to navigate your way out of your financial troubles.
In terms of how we help, the process begins with a free appointment with one of our professionally accredited counsellors. You may feel a sense of trepidation prior to one of these appointments; a totally normal feeling, but take comfort knowing that our counsellors are trained professionals and are there to understand your situation in greater detail. They do so in a non-judgemental way, so you can feel completely comfortable discussing your finances with them.
Specifically, our counsellors will assist you in several ways:
- Discuss and seek to understand your financial situation.
- After gathering the important information, they’ll review your position and help you create a budget and, together, you’ll explore opportunities and options to resolve your debt situation, noting that our counsellor’s will provide you with sage advice throughout this process.
- Ultimately, they will potentially help you save thousands of dollars.
Furthermore, your counsellor will see if you qualify for several options which may aid you greatly when you are experiencing financial difficulty. These options are a debt management program, consumer proposal and debt settlement, all of which are explored in greater detail below.
Your Debt Relief Options
- Consumer Proposal – A Consumer Proposal is a legally binding arrangement under Canada’s Bankruptcy and Insolvency Act. It is negotiated with your creditors and administered by a Licenced Insolvency Trustee (LIT), who works with you to develop and file your proposal. This payment schedule typically lasts 4-5 years, however, it can be as short as 2-3 years depending on your situation.
- Debt Management Program – A Debt Management Program combines all of your debt payments into a single and affordable monthly payment. Under this scenario, your interest rates are substantially reduced, sometimes to 0%. The length of a debt relief program will typically last between 2-5 years. Within 2 years of finishing the program, your debts will be completely erased from your credit report.For many people, this type of program works well, because it’s easy to understand and implement.
- Debt Settlement – Debt Settlement is an option for people who perhaps have access to a large lump sum of money, typically from their personal savings. Whilst many people may not be in a position to access large sums of savings, for some, it’s an option. Under this scenario, your debts are negotiated and subsequently paid off and settled in one fell swoop.
I need immediate help, what do I do?
For some people, the situation is urgent and they need immediate help. Sometimes, they simply want to stop the collection agents from their relentless pursuit, so they can breathe and assess the situation – we can help with this.
Whilst there is no ‘one size fits all’ solution, take comfort knowing that you can contact us immediately and schedule an appointment with one of our professionally accredited counsellors.
They take appointments via phone or in person and will get to work immediately to understand your position.
They will guide you down the best path.
Don’t sit in fear, letting your situation worsen – reach out today and schedule an appointment with a counsellor. Starting with this is the best way to get your finances back on track.
How do I know if I need debt help?
If you are experiencing any of the following situations, it is likely you need debt assistance:
- Misusing Credit: Your debts are now too high and you can only afford the minimum monthly repayment. Sometimes, you can’t afford the minimum and you’re overspending.
- Stalling Creditors: Stalling one creditor to pay another.
- Cash Advances: Using cash advances from one creditor to meets the debts owed to another.
- Bank hopping: Hopping between financial institutions, applying for your second or third credit card.