When it comes to dealing with debt, there are many solutions available. At Crowe MacKay & Company, we offer a range of credit relief services and debt solutions in Vancouver and the surrounding area. Bankruptcy is not your only option, so please call us or fill out our Debtor Application Form to learn what the best course of action is for you.
For most people, bankruptcy should be treated as a last resort. If you’ve declared bankruptcy before, you should especially try to avoid going bankrupt again. The consequences can include:
Although bankruptcy should be avoided if possible, in some situations it is impossible to reach an agreement with creditors. In these cases, bankruptcy may be the best option.
If you’re struggling with debt, a consolidation loan may let you pay off your creditors, leaving you with just one monthly payment. After consolidating your debt, it is important that you don’t rely on credit cards, so you should live on a cash-only basis to protect yourself from further debt. Keep in mind that you should shop around for the best interest rates for your consolidation loan. Depending on your circumstances, you may find that you can’t get a consolidation loan through conventional channels. In that case, you may be able to borrow the funds from a friend or relative.
A proposal is an agreement between you and your creditors allowing you to discharge your debts by paying more than your creditors would receive if you went bankrupt but less than what you currently owe. Your proposal must be filed by a Licensed Insolvency Trustee. After filing, your creditors will vote on whether to accept your proposal. There are 2 types of proposal available to you: Consumer Proposals and Ordinary Proposals.
Consumer Proposals are available to individuals with debts of less than $250,000 (excluding mortgage secured by principal residence). If your proposal is rejected by your creditors, you will still have options available to you, and you do not have to go bankrupt.
Ordinary Proposals place no restrictions on the maximum amount of debt. If an Ordinary Proposal is rejected by your creditors or by the Court, you will be automatically bankrupt.
Financial difficulties can be stressful and embarrassing. If you are in a substantial amount of debt, it may be helpful to speak to a credit counsellor. The Credit Counselling Society is a non-for-profit organization that provides credit counselling services. Visit them at their website or call 1-888-527-8999 for assistance.