Personal Bankruptcy Lindsay – Facts, Alternatives & Options | Ontario

Types of Debts – What Bankruptcy Can’t Do

There’s a lot that people don’t tell you about bankruptcy. Sure, it will get rid of most of your debts, but there are some debts you might still have to pay because they can’t be included in your bankruptcy.

3 common kinds of debt that are excluded from bankruptcy are:

• Secured debts, like a car loan or mortgage
• Student loans, if they are less than 7 years old
• Child and alimony support payments that aren’t up to date

Also, if you recently racked up credit card bills and now want to go bankrupt, creditors may stop you or ask that you pay more, before they let you get rid of the debt through bankruptcy.

The Bankruptcy Process – Working with Your Trustee to Obtain Your Discharge

Those who have gone bankrupt might not tell you that it takes a minimum of 9 months to complete the bankruptcy process. There are costs and fees to go bankrupt, which you pay to your trustee, as well as bankruptcy counselling sessions you must attend. Depending on your circumstances, you may also need to pay extra to your creditors, which delays completing the process and obtaining your discharge. Not everyone loses their home and assets when they file for bankruptcy, but assets above what you’re allowed to keep in Ontario will be sold by your trustee.

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 Report & 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.

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.

If you happen to have bad credit, you might be worried about consolidating your debts, but consolidating payments doesn’t mean borrowing more money, so credit problems aren’t an issue. That’s how a debt management program with a non-profit credit counselling agency works. Your creditors help you by lowering or waiving interest charges. This makes smaller payments possible, saves you thousands in interest and lets you pay back what you borrowed. Your monthly payments are based on what you can afford and there’s no loan to get you deeper into debt.

Settling Your Debts

Consolidation programs and loans help you repay what you borrowed. Most people really do want to pay back what they owe and not walk away from their debts by declaring bankruptcy. However, only paying back part of what you owe might be the best solution. That’s where a debt settlement, when structured properly, can help. You need a lump sum of money to offer your creditors a settlement, but sometimes that’s not as far-fetched an option as you might think.

Consumer Proposal

Sometimes a legal alternative to bankruptcy might be what you need. A Consumer Proposal could be the right solution depending on your situation. A Consumer Proposal in Lindsay is arranged by a trustee, and by making monthly payments, you pay back part of what you owe. Your creditors have the option to agree to the proposal or not.

Which Option is Best?

As you can tell, a lot depends on your situation. When you’re just trying to make ends meet and duck the collection phone calls, you need help looking at your circumstances objectively. You need a professionally trained Credit & Debt Counsellor to help you come up with a good plan.

Non Profit Bankruptcy & Credit Counselling Information & Advice in Lindsay, 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 Lindsay 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 offers assistance to people who need help with their payday loans in Lindsay (even online ones).