Payday Loan Debt in Lindsay, Ontario
Payday loans can seem like a quick solution when you need money quickly.
Perhaps you might take out a payday loan with the intention of paying it back on your next payday.
However, payday loans don’t always work out as short-term as they are intended to be.
They can get you stuck in a cycle of debt that is difficult to escape from.
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How Bankruptcy Helps with Payday Loans
One option that is available for addressing payday loans and other debts in Lindsay is bankruptcy.
To file for bankruptcy, you need to have at least $1,000 in debts and be insolvent.
Being insolvent means that you are unable to meet the payments that are required of you.
When you file for bankruptcy, it will result in the discharge of your debts, so you will no longer have to make payments toward them.
Some people might also need to make surplus income payments after filing bankruptcy.
You will be allowed to keep some of your assets, but might be required to sell some of them to pay your creditors.
A Licensed Insolvency Trustee will work with you to file bankruptcy and will deal with your creditors for you, as well as ensure you know which duties you have to fulfill in order to be discharged from your debts.
In Ontario, your duties include providing your tax information to your trustee, submitting copies of your pay stubs and other proof of income each month, and making required payments.
You are also required to attend two credit counselling sessions and surrender any non-exempt assets.
Most debts will be discharged, including unsecured debts such as payday loans.
However, there are some exceptions, including secured debts.
How a Consumer Proposal Helps with Payday Loans
A consumer proposal offers an alternative to filing bankruptcy.
If you want to deal with your payday loan debt but avoid bankruptcy, it could present a legitimate possibility.
You can file a consumer proposal if you have debts that don’t exceed $250,000 (excluding mortgage debt on your home).
Unlike bankruptcy, it allows you to keep your assets.
A Licensed Insolvency Trustee will negotiate with your creditors so that you can pay a portion of your debts over a period of no more than five years.
Both bankruptcy and consumer proposals are available for dealing with payday loan debt, among other options.
Speaking to a trustee will give you the information that you need to make a decision based on your personal finances.
Get assistance with payday loans in Lindsay, Ontario from Bankruptcy Canada.
Our resources offer you information about bankruptcy and consumer proposals, and how they can resolve your payday loan debts.
We can help you to find a Licensed Insolvency Trustee, who will explain the debt solutions available to you.
Get in touch with us to arrange a free consultation and start your journey.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?