Bankruptcy
Know what to expect when declaring bankruptcy in Canada.

Better Debt Help Options than Bankruptcy in Canada – Best, Debt Management Program

Are you looking for some better debt help options in Canada other than bankruptcy? If you are stressed out and really struggling with your finances, there are some things that you can do. First, speak with a non-profit Credit Counsellor before you file for bankruptcy in Canada. There are a number of alternatives to bankruptcy and you’ll want to carefully weigh the pros and cons of each one.

When you speak with a Credit Counsellor, each option will be addressed and the one that has the best chance of helping you achieve your financial goals and not hinder any career aspirations you might have is likely the best choice. If going bankrupt or filing for a Consumer Proposal (last option before bankruptcy) is your best option, they’ll let you know and refer you to a reputable bankruptcy trustee.

Better Debt Help Options than Bankruptcy in Canada - Best, Debt Management Program
Better Debt Help Options than Bankruptcy in Canada – Best, Debt Management Program

Going Bankrupt Can Also Affect Future Careers You May Be Interested In

Here’s something to think about: if you might ever want to own your own business, pursue a career in law enforcement, finance, or politics, taking the dramatic step of going bankrupt today can put roadblocks in your path down the road. Going bankrupt can affect your future careers and make it more difficult to become bonded if your occupation requires you to enter your customer’s homes.

A Great Alternative to Bankruptcy that a Lot of People Don’t Know About

One popular alternative to bankruptcy that has no long-term negative consequences or legal record (like a consumer proposal) is a Debt Management Program. This program is offered by non-profit credit counselling organizations and is recognized by virtually all creditors in Canada. If a Credit Counsellor believes that your debt and your situation would qualify for this program, you can authorize them to approach your creditors and negotiate to have your unsecured debt placed on the program.

Why a Debt Management Program is a Better Debt Help Option – Reduced Interest and Records Erased After 2 Years

There are many benefits of a debt management program. Interest rates on your debts are then either substantially reduced or completely eliminated (they are typically reduced to 0%). You then make one monthly payment to the credit counselling organization each month and they in turn disperse this payment to your various creditors.

The amount of your monthly payment is determined by you and your Counsellor based on what your monthly budget for bad debt reduction says you can afford (after reasonable amounts are allocated for your living expenses). Creditors then stop calling you and only contact the credit counselling organization of your choice. Your debt is then repaid within 5 years, but an average program is usually paid out in around 2.5 years. All records of this program and any bad debts are then erased from your credit report within 2 years of you completing the program.

Avoid the Negative Consequences of Bankruptcy with a Debt Management Program (If It Applies to Your Situation)

The wonderful thing about a Debt Management Program is it allows you to take control of your situation and fully repay your debts with dignity, integrity, peace of mind, and no long-term regrets. We often hear people tell us they wish they knew about the Debt Management Program before they went bankrupt. The negative consequences of bankruptcy can extend further than just impacting your finances. It can also have a lasting, negative psychological effect on a lot of people. If a Debt Management Program is a viable option for someone, all this can be avoided.

Other Options to Avoid Bankruptcy in Canada – Talk to a Credit Counsellor

Other options may be available to help you avoid bankruptcy, depending on your province and your financial situation. You just need to sit down with a professional, non-profit Credit Counsellor and go over your situation. Together, you will explore and learn about better debt help options other than bankruptcy in Canada. To get started, give us a call and speak with one of our Counsellors. Only then can you be sure you’re making an informed decision. Give us a call today, at 1-888-527-8999. You have nothing to lose but your debt.

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Need some questions answered?
Wondering if bankruptcy is for you?
If you feel that you’re situation is so bad that you may need to declare bankruptcy, don’t worry. You’re not alone. This is how a lot of people feel when they don’t see any light at the end of the tunnel.

Fortunately, for many people who feel this way, there are other less severe options. Speak with one of credit counsellors to learn all your options. They’ll be happy to carefully review your whole financial situation with you and answer any questions you may have. Speaking with our certified counsellors is always free, confidential and without any obligation. We’re here to help.

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