Personal Bankruptcy Region of Peel – Facts, Alternatives & Options | Ontario

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

It’s easy for people to tell you that bankruptcy helped them eliminate their debts, but do they also tell you that it’s not possible for everyone? Some debts might still have to be paid because by law, they can’t be included when you file for bankruptcy.

3 common types of debt that aren’t included in a bankruptcy are:

• Secured debts, like a mortgage or car loan
• Student loans that are less than 7 years old
• Child and alimony support payments that you’re behind on

Many people think that they need to declare bankruptcy because of their credit card debt, but if that debt is recent, creditors may not allow you to eliminate those balances with bankruptcy.

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

Alternatives to Bankruptcy in Ontario

By now you are likely wondering what alternatives to bankruptcy really exist. There are quite a few, and combining them might also be a solution. Depending on your situation, 4 options that might work for you are: consolidation loans, debt repayment programs, debt settlement options or a Consumer Proposal.

Debt Consolidation & Debt Repayment Plans

Consolidation usually means consolidating your bills and everything you owe into a new loan. With a fine-tuned budget, this might work for you. For other people, consolidating only the monthly payments makes more sense. Don’t worry if you’ve been turned down by your bank or credit union. There are other types of debt consolidation that may be available.

Consolidating payments doesn’t involve borrowing more money, so there’s never a problem with bad credit. That’s how a debt management program and plan with a non-profit credit counselling organization works. Creditors help by lowering or waiving interest charges while you’re making your payments. This lets you pay off your debts and saves you thousands in interest and fees. What you pay each month is based on what you can afford after you’ve had help to create a realistic budget.

Settling Your Debts

To help you pay back what you borrowed, consolidation programs and loans can help. Most people don’t want to walk away from their debts and go bankrupt, but they think they have to because they don’t know what else to do. Surprisingly, sometimes only paying back part of what you owe can also be a solution. When done properly, a debt settlement offers your creditors a lump sum of money. That might not be as far-fetched an option as you might think.

Consumer Proposal

There are also times where you need a legal alternative to bankruptcy, so a Consumer Proposal might be right. A Consumer Proposal in Region of Peel 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?

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 Information & Credit Counselling Advice in Region of Peel, 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 Region of Peel 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

Office Serving Region of Peel
77 City Centre Drive
East Tower, Suite 501
Mississauga, ON L5B 1M5

Phone: 647-776-0485

Our office that serves Region of Peel also offers bankruptcy alternatives in Brampton, Mississauga, Caledon, Toronto, York Region, Vaughan, King, Halton Region, Oakville, Milton, and Halton Hills.

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 Region of Peel.