Personal Bankruptcy Bolton – Facts, Alternatives & Options | Ontario

Types of Debts – What Bankruptcy Won’t Do For You

Bankruptcy isn’t something most people want to talk about with their friends. Yes, bankruptcy gets rid of most of your debts, but did you know that there are some debts you might still have to repay because they can’t be included in your bankruptcy?

3 types of debt that you can’t declare bankruptcy on:

• Secured debts, like mortgages or car loans
• Student loans that are less than 7 years old
• Child and alimony support payments that are in arrears

Some people also want to declare bankruptcy because of their credit card debt. However, if they only recently got into debt with their credit cards, creditors may oppose eliminating the debts with bankruptcy.

Bankruptcy Procedures – The Process of Working with Your Trustee to Attain Your Discharge

Filing for bankruptcy is the easy part. Did you know that it takes at least 9 months to complete the whole bankruptcy process? During that time, there are costs and fees to pay to your trustee for bankruptcy. You are also required to attend two bankruptcy counselling sessions. Depending on your situation, if you have to pay extra money to your creditors, completing the process will take longer. If you have too much equity in your home, or assets above what you’re allowed to keep in Ontario, your trustee will sell your assets for you.

Many people aren’t aware that their trustee, their creditors, the Office of the Superintendent of Bankruptcy or the Court could oppose or delay their discharge from bankruptcy. Depending on someone’s situation, they may need to attend a hearing, answer questions under oath and/or meet additional requirements to obtain their discharge.

Your Credit Rating & Bankruptcy in Canada

Legally eliminating debt through bankruptcy seriously impacts your credit rating and makes it hard to obtain credit later. You need to show creditors why they should trust you enough to lend you money again. Not being able to renew your mortgage, get a loan or apply for a low interest rate credit card often impacts other financial plans and puts your life on hold.

Ontario Bankruptcy Alternatives

By now you may be wondering which alternatives to bankruptcy could work for you. There are a number of options and the best solution might mean combining some of them. Depending on your circumstances, 4 options that you may not have considered are: consolidation loans, debt repayment programs, debt settlement options or a Consumer Proposal.

Debt Consolidation & Debt Repayment Plans

When you hear the words “debt consolidation,” you probably think that this means consolidating your bills and other debts into a new loan. This could work for you if you’ve got a realistic budget. For many people, it makes more sense to consolidate only their monthly payments. Don’t worry if you’ve been turned down for a consolidation loan by your lender. There are other types of debt consolidation to consider.

When you consolidate payments, you don’t actually borrow more money, so bad credit is never a problem. That’s how a debt management program with a non-profit credit counselling organization works. Your creditors will help you by lowering or waiving ongoing interest charges. This saves you thousands of dollars in interest and lets you repay your debts. The amount you pay each month is based on your budget and on what you can afford.

Settling Your Debts

Repayment and consolidation programs or loans help you pay back what you borrowed – which is a good thing because most people really don’t want to file for bankruptcy and walk away from their debts. However, sometimes it’s possible that only paying back part of a debt may be the best solution. That’s where a debt settlement with a reputable company might help. Offering creditors a settlement requires a lump sum of money, but sometimes that’s not as far-fetched an option as you might think.

Consumer Proposal

If you need a legal alternative to filing for bankruptcy, your situation might mean that you need a Consumer Proposal. A Consumer Proposal in Bolton is set up by a trustee, and once agreed to by your creditors, you make monthly payments to repay part of what you owe.

What’s My Best Option?

By now you can likely gather that a lot depends on your situation. And regardless of what you’ve tried in the past, you need help taking an objective look at your whole financial situation with a fresh set of eyes. You need a trained and certified Credit Counsellor to help you come up with a good plan.

Non Profit Bankruptcy Information & Credit Counselling Advice in Bolton, Ontario

One of our expert Credit Counsellors can help if you need answers to questions about joint debts, have questions about debts left over from a divorce, want to learn more about alternatives to bankruptcy, or want to know more about how going bankrupt would affect you. They are experts in helping people come up with good solutions to deal with their debts, and would be happy to provide you with the information you need to make an informed decision to get your finances back on track.

Your Counsellor will:

• Review all of your options to deal with your debts, including bankruptcy alternatives
• Show you how to manage your living costs and bills effectively
• Refer you to a bankruptcy trustee in Bolton if filing for bankruptcy is a good option for you
• Answer your questions and explain what you need to know so that you can decide the best way to deal with your debts

Related Links

• The Office of the Superintendent of Bankruptcy in Ontario
• Insolvency Glossary
• Credit Counselling Society Ontario office locations

The Credit Counselling Society also helps those who are having difficulty with their payday loans – even online loans – in Bolton.