Tips on How to Get out of Debt in Edmonton

Getting out of Debt in Edmonton

No one wants to be in debt.

But if you find yourself in that situation, it’s good to identify the best possible ways to recover from it.

Let Bankruptcy Canada be your guide on how to get out of debt in Edmonton.

Although there are, of course, other ways that you can get out of debt, such as applying for a debt consolidation loan, paying off monthly payments in full (e.g your credit card payments or student loans), spending more wisely, paying off your bigger debts and finding another job to help cover the payments, two very effective methods is to file for bankruptcy or complete a Consumer Proposal.

Tip #1 – File For Bankruptcy

Although the thought of filing for bankruptcy isn’t favorable with everyone, it can be a powerful tool that can be used to get out of debt in Edmonton.

Allowing people that are struggling with debt to effectively wipe their financial slate clean and get a fresh start, it’s easy to see why many opt for it.

So what can bankruptcy do?

There are so many benefits that come with filing for bankruptcy, including the following:

 

  • Wage garnishments end;
  • Legal actions against you are stopped;
  • You’ll be able to regain control of your finances;
  • An order called the ‘automatic stay’ is put into place, that stops creditor harassment and collection activities;
  • Any evictions, foreclosures and repossessions are temporarily stopped;
  • Unsecured credit card debt is wiped;
  • Medical bills, personal loans and overdue utility payments are wiped;
  • Secured debt is wiped – keep in mind that if you have a property, this might be used as collateral.

 

There are two main types of bankruptcy – Personal Bankruptcy (under the Bankruptcy and Insolvency Act of Canada law) and a Consumer Proposal.

The type that you file for will depend on your financial situation.

It’s a good idea to enquire with your trustee as to which type is more suitable for you.

Tip #2 – A Consumer Proposal 

Alternatively, when looking to get out of debt in Edmonton, you could opt for a Consumer Proposal.

A legally binding debt settlement agreement, a Consumer Proposal is designed for people that want to avoid filing for bankruptcy and can afford to repay a portion of their debt.

Once the payment terms have been negotiated between you and your creditors, you will meet with your Licensed Insolvency Trustee (LIT) to review your financial situation and work out how much you can realistically afford to pay.

Your LIT will then file the agreement.

Sanctioned under the government, it’s an ideal solution for Canadians that are struggling to keep up with monthly payments.

Typically, this type of agreement can help with a variety of unsecured debts including, but not limited to:

 

 

Many people opt for a Consumer Proposal due to the numerous benefits that come with them.

Including that they give you more flexibility to repay your debt, making the payments more manageable and that you won’t lose your assets.

Looking for Debt Relief?

If you’re looking for further advice on how to get out of debt in Edmonton or the surrounding areas, don’t hesitate to get in contact with us today by calling one of our local and licensed trustees on (877) 879-4770 or by filling out our easy to use online form.

 

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