Richmond Hill Bankruptcy Alternatives & Options: Exploring Your Debt Relief Choices

Bankruptcy Alternatives in Richmond Hill, ON

If you are struggling with the issue of debt in Richmond Hill, then it can seem like you are out of options.

You might be struggling to cope with the number of bills and costs that keep mounting up.

This is completely understandable and it’s why many people turn to bankruptcy as a way to gain a fresh start.

However, it’s important to understand that bankruptcy is not the only option available to you.

There are other possibilities.

Bankruptcy Explained

There are a lot of misconceptions surrounding bankruptcy and the impact it will have on your life.

First, it’s worth pointing out that making a bankruptcy claim is not an instant process.

It can take as much as nine months to get through to the other side.

Your assets will also be used to pay as much back as possible to your creditors although some of your assets will remain.

Anything above what you are allowed in terms of the agreement will be sold.

Bankruptcy can also involve a legal proceeding which determines whether you will be discharged from bankruptcy.

Bankruptcy will also significantly impact your credit rating.

This can stop you from gaining a mortgage for a home in the future or even getting hired for a job.

As many people discover, gaining credit once you have eliminated your debt through bankruptcy is incredibly difficult.

As such, any financial plans you have will likely need to be put on hold.

So, you won’t be able to renew your mortgage, apply for a credit card or even take out a small loan.

All these limitations will impact your quality of living and perhaps crucially, how quickly you will be able to rebuild your life.

Will Bankruptcy Clear All Debt?

One of the greatest misconceptions surrounding this type of claim is that you can use it to clear any and all the debts that you may have.

This simply isn’t the case.

There are numerous debts that you can’t declare bankruptcy on including child and support payments as well as student loans that are no more than seven years old.

Secured debts such as a car loan or a mortgage can also not be claimed.

Many people also want to declare bankruptcy on credit card debt that they have accumulated.

However, if the debt is relatively fresh, many creditors will not allow you to do this.

Instead the debt from a credit card could remain and your claim could be rejected.

This is why it is worth exploring other options rather than jumping straight to a bankruptcy claim.

There is a wealth of other possibilities that will not have such a drastic impact on your credit rating while still providing the relief that you need.

Alternatives to Bankruptcy

Now that we have established that bankruptcy should not be your first consideration, you might be wondering what other options are available to you if you are struggling in debt as a resident of Richmond Hill.

Well, there are quite a few possibilities that could benefit you.

For instance, you might want to think about making a consumer proposal.

A consumer proposal is an offer to your creditors which they can either accept or reject.

They could also amend the offer to make it more acceptable.

In doing so, you will be able to significantly reduce the money that you owe and stop activities such as wage garnishment.

A consumer proposal is designed to help you pay back your debt in a shorter period of time.

A similar solution would be a debt settlement.

This will provide your creditors with a lump sum of money but crucially not all of the debt you owe.

This is one of the ways that you can escape debt almost immediately which is a fantastic option, if you can access it.

Alternatively, you could also explore debt consolidation.

With debt consolidation, you put everything including any bills that you owe into a fresh loan.

This is useful because it means that you will be paying one sum each month rather than several.

As such, it can make your debts far easier to manage.

It is however still a loan, so you will need to make sure that the interest rate on the new loan is going to benefit you.

Remember the larger loan will take longer to pay off so a lower interest rate is the biggest advantage in this case.

If you have poor credit, you may be turned down by a bank or even a credit union when exploring debt consolidation.

However, there are always alternate resources that you can explore here.

You can check out a credit counselling plan.

With a credit counselling or management program, you can speak to a licensed professional.

They will work with your creditors to lower your interest charges or even eliminate them completely.

It will save you thousands on the cost that you owe.

They will also help you set up a budget that is realistic and based on what you will be able to afford.

A key advantage of these choices is that you will be paying off some of the debt that you owe.

In some cases, you’ll be paying off most of it which will make it less likely that your reputation as a borrower is damaged beyond repair.

Choosing The Right Option For You

As you can see, there are numerous possibilities available to you if you are suffering in debt.

You are certainly not as stuck as you seem and you might be able to avoid claiming bankruptcy in Richmond Hill completely.

If you are not sure which path to take here, then please do make sure that you contact our team today.

A friendly professional will discuss your options with you and help you find a solution that matches your current financial situation and allows you to gain the relief that you need from your debt.

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