Going for personal bankruptcy may often be an option that people in Canada think they have to take when they felt severely in debt. However, before taking this route that declares you bankrupt, it’s wise to find out an objective opinion in view of your financial situation. There are a variety of alternatives to bankruptcy in Canada that you can avail yourself of throughout Canada in all provinces and territories.
Bankruptcy Alternatives in Canada
Following are the personal bankruptcy alternatives that are available in Canada:
- Debt Consolidation Loan
- Debt Management Program (Payment Consolidation)
- Orderly Payment of Debts (OPD); please find out its availability in your province prior to taking it.
- Consumer Proposal
You are facing the possibility of personal bankruptcy but are not willing to give in yet; is it so? There are several alternatives to bankruptcy in Canada. Finding out what is right for you is an important task that you can talk with a professional about the options for you. There are trained peoples like bankruptcy lawyers that can help you in making the decision about what alternative may be right for you.
You will find most of the creditors who are willing to work with you because they will make more money helping you solve your debts than having it written off in a court of law where they will not recoup their losses. In other words, they do not want to write off the loans. When you are seeking help to keep from bankruptcy you will want to either hire a lawyer or a professional negotiator. A professional negotiator can be found at nonprofit organizations for debt counselling. You can also find these individuals online or in the phone book. You will of course want to check references to make sure you are dealing with a reputable company. Those who are in debt know that creditors will send them to collection services that will hound the person. In order to lower stress, it is important to have someone field the calls while you are trying to negotiate terms you and the company can live with.
It can be difficult to find the money to afford a bankruptcy lawyer especially when you are already struggling so remember the nonprofit organizations do hire professionals to help you. A credit negotiator can establish a deal for a smaller cash payment to help you settle the claim against you from that company. You may pay less on a monthly basis or you may be able to give them a lump sum to make the company settle without bankruptcy. This lump sum can have you pay off the debt so you can concentrate on other debts.
The percentage you may have to pay could just be the balance without the attachment of interest if you can pay it right away. They may invoke an Individual Voluntary Arrangement that states you have a certain period of time to pay off a percentage of the loan.
You will want to try alternatives before seeking bankruptcy because it can affect your credit score. If you still have decent credit is behooves you to try an alternative such as refinancing your loans to perhaps one overall loan. You may find a lower annual percentage rate with the consolidated loans and still save your credit.
There are alternatives to bankruptcy in Canada the trick is to know where to find them. You do not want to listen to bad advice so you should seek a reputable company even a nonprofit organization that will give you the advice and guidelines that you want to avoid bankruptcy.
For an update and authentic information about alternatives to bankruptcy, you should consider reading here at the Office of the Superintendent of Bankruptcy Canada. It’s strongly recommended to adopt the best possible alternatives to bankruptcy in Canada that you can afford in relation to your personal financial situation; it’s always in your best interest to check out and find your other options before declaring personal bankruptcy. Moreover, you should consider finding what assets you may have to give up in case you are going to file for bankruptcy and how long it will take to rebuild your credit history after the bankruptcy process is completed.