Alternate solutions :

Many problems are easy to resolve, but others require the intervention of an expert. The best way to start solving your problems is to admit their existence before losing control of the situation.

Bankruptcy is not the only solution!

Here are some alternate solutions to your financial problems:

Informal Proposal:

Explain to your creditors why you cannot meet your payment obligations and propose to reduce the amount of the payments and to extend the reimbursement period. It is surprising the number of creditors that will accept these propositions.

Consolidation Loan:

You can ask your bank, or any other financial institution, about the possibility of consolidating your debts through a single loan. In a case like this, the bank or the financial institution pays all your debts and in return, you have the obligation to make monthly payments. It is wise to contact different places before choosing which financial institution to do business with, this way ensuring you get the best rate and term on the loan.

It is very important that you stop buying at credit, because if you keep borrowing, you may never get out of this situation.

Voluntary Deposit (Lacombe Law)

The way it works is simple, you do monthly remittance to the court. This monthly remittance is based on your salary and your family responsibilities. The office that manages this program can usually be found at your local court of law.

Consumer Proposal

In accordance with the Insolvency and Bankruptcy Act, you can make a proposal to your creditors to reduce the amount of your debts, to extend the reimbursement period, or a combination of both. This type of proposal is explained in detail at the Consumer Proposal page.

Bankruptcy

If none of these alternatives are useful in solving your problem, then bankruptcy may be your best choice. Bankruptcy is the last alternative if you can no longer meet your financial responsibilities.

Bankruptcy is a legal process regulated by the Insolvency and Bankruptcy Act. Here is how it works: since you cannot repay your debts, you remit all your goods, except for the ones exempt by law, to a trustee. This process discharges you from most of your debts and all pursuit engaged against you by your creditors will be stopped. The bankruptcy is explained in detail at the Bankruptcy page.