Owen Sound Bankruptcy Alternatives & Options

Bankruptcy Alternatives in Owen Sound, ON

It’s never a good feeling when you can’t pay your debts and bills.

No one wants to file for bankruptcy, but you may assume it’s your only choice.

Be glad to know there are Bankruptcy Alternatives in Owen Sound that you can explore further and take advantage of if you desire.

While bankruptcy may be your first thought when you’re having money problems, it’s not your only option.

Before you make a move to file for bankruptcy, learn more about how the process works and how it’ll impact your future.

The last situation you want is to have regrets because you didn’t take the time to explore alternatives and options.

Understand types of debts and the bankruptcy process further so you can decide if a different path is best for you.

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Types of Debts & Bankruptcy

You may not realize it, but there are certain debts that you can’t include when you file for bankruptcy.

By law, some of your debts may still have to be paid by you.

3 Types of debts that you can’t declare bankruptcy on include:


  • Secured debts, like mortgages or car loans;
  • Student loans that are less than seven years old;
  • Child and alimony support payments that are in arrears.


Another area to be aware of is how bankruptcy works with credit card debt.

Creditors may oppose eliminating the debts with bankruptcy if you recently went into debt with your credit cards.

Knowing these details will help you to see that while bankruptcy may be top of mind for you, it’s not always possible.

The Bankruptcy Process

The bankruptcy process may take a minimum of nine months to complete from start to finish.

There are costs and fees on your part that you’ll be responsible for (which you pay to your trustee) and counselling sessions you must attend.

There may be delays if your circumstances require you to pay extra to your creditors.

Your trustee will sell assets above what you’re allowed to keep.

However, not everyone will lose their home and assets when choosing to file for bankruptcy.

There are many obstacles and people who may oppose your bankruptcy or cause you a delay in the process.

For example, your trustee, creditors, or the Office of the Superintendent of Bankruptcy or the Court may take a stand against what you’re trying to do.

To obtain a discharge, you may be required to answer questions under oath and meet additional requirements, depending on your situation.

Your Credit Rating & Bankruptcy in Canada

When it comes to your credit rating, bankruptcy will cause it to take a major hit.

After you have legally eliminated your debts through bankruptcy, you may find that you aren’t able to obtain credit easily.

It’s going to take time and patience before creditors are willing and trusting enough to lend you money.

You may have to put your life on hold when it comes to taking out a loan or renewing your mortgage.

Applying for a low-interest rate credit card will also be more challenging.

Bankruptcy Alternatives in Owen Sound

Now that you’re more informed about the bankruptcy process, you may be wondering what Owen Sound bankruptcy alternatives and options you have.

There are four primary options worth considering, and you might even find combining a few of them may be the way to go.

Consolidation & Debt Repayment Plans

You may hear “debt consolidation” and think that this means consolidating your bills and other debts into a new loan.

If you have a realistic budget you’re working with, then this may be a suitable option for you.

However, for many other people, it makes more sense to consolidate only their monthly payments.

You don’t have to worry about having bad credit because consolidating payments doesn’t involve borrowing any money.

That’s how debt repayment programs work.

Credit counselling is an option that is normally offered by not for profit organizations.

Creditors may help you by waiving or lowering interest charges while you work on paying down debt based on what you can afford.

Settling Your Debts

You may think you have to walk away from your debts and file for bankruptcy, but sometimes paying back part of what you owe may be a possibility.

When done properly, a debt settlement offers your creditors a lump sum of money.

It can be a very beneficial choice because it saves money and allows you to correct your finances when you would be in an otherwise uncertain position.

Consumer Proposal

A consumer proposal is a legal alternative to filing for bankruptcy.

A Consumer Proposal in Owen Sound is set up by a trustee.

Once agreed to by your creditors, you make monthly payments to repay part of what you owe.

A consumer proposal is often a much more sensible option to bankruptcy because it offers debt forgiveness at a much-reduced rate.

Making A Decision

When considering your Owen Sound Bankruptcy Alternatives, it’s best to look more closely at your situation.

You may feel overwhelmed when you have collection agencies calling you and are trying to make ends meet.

Therefore, consider speaking to a professionally trained Credit & Debt Counsellor to help you come up with a good plan

Consulting with an Expert

If you are wondering what the alternatives to bankruptcy are, if you can’t pay your bills, these are some of the most common strategies.

If you are in a lot of debt, and you want to know more about debt-relief options, get in touch today.

You can reach us on the phone or fill out an evaluation form, and we will get back to you.

We are Canada’s top bankruptcy and consumer proposal information website.

Bankruptcy Canada has been online for over 20 years.

We are proud to have helped Canadians from every walk of life get a fresh financial start.

Get in touch with us today to discuss Owen Sound Bankruptcy Alternatives and your financial situation.

We help people from all walks of life in Canada looking for debt relief or information on your credit and handling of money matters.

Canadian Bankruptcies

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What is Bankruptcy?
Bankruptcy FAQs
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What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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