Personal Bankruptcy Regina – Facts, Alternatives & Options | Saskatchewan

Types of Debts – What Bankruptcy Won’t Do

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

It’s not well known, but it takes at least 9 months to go through all the steps of the bankruptcy process. As part of the process, you make payments to your trustee for the costs and fees of going bankrupt, and you also have to attend two bankruptcy counselling sessions. Completing the process and getting discharged takes longer if you need to pay extra to your creditors because of your situation. If you have assets or too much equity in your home, above what you’re allowed to keep in Saskatchewan, your trustee will sell your assets for you.

You should also know that your bankruptcy trustee, your creditors, the Office of the Superintendent of Bankruptcy or the Court can oppose or delay your discharge. Depending on your circumstances, you may need to attend a hearing, answer questions under oath and/or meet the additional requirements to obtain your 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.

Saskatchewan 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.

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.

Debt Settlement

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 Regina is set up by a trustee, and once agreed to by your creditors, you make monthly payments to repay part of what you owe.

Which Option is Best?

The right solution to your debts depends on your circumstances. When you’re busy just trying to get from one pay cheque to the next and avoiding collection calls, you need help to look at your situation with a fresh set of ideas. You need a qualified Debt & Credit Counsellor to help you come up with a good plan.

Non Profit Bankruptcy Information & Credit Counselling Advice in Regina, Saskatchewan

Get answers to your questions about joint debts or debts remaining after a divorce, find out why someone should not file for bankruptcy, or learn more about bankruptcy alternatives from one of our Debt & Credit Counsellors! They are experts in helping people find solutions to their debt and money problems, and they’d be happy to give you with the information you need to make choices that will benefit your financial future.

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 Regina 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 Saskatchewan
• Insolvency Glossary
• Credit Counselling Society Saskatchewan office locations