Alternatives to Bankruptcy

If you are currently facing financial difficulty and bankruptcy, there are a number of options available to you. You should explore all possible solutions before you make any decisions.

1. Consumer Proposal

Filing a consumer proposal provides protection from all your unsecured creditors. More Info

2. Debt Consolidation Loan

Debt consolidation gathers your debts into a single loan so that you can repay multiple creditors through one monthly payment. The interest rate is often lower than what your existing creditors offer.

3. Informal Debt Settlement

Depending on the amount of your debt, it may be possible for you to contact your creditors directly and negotiate a lower interest rate or a repayment schedule that works for you. With informal debt settlement, creditors expect you to present them with a plan outlining how you can pay them back; there are many variables and potential challenges to consider.

4. Credit Counselling

In situations where your debt is low but repayment is becoming unmanageable help from a credit counseling agency may be an option. Non-profit credit counseling organizations contact creditors on your behalf. They also provide education and counseling on personal budgeting strategies and how to avoid debt.