Loss of employment, sickness, separation … The reasons that can lead to a difficult financial situation are numerous. Do you have problems filling the ends? Do your debts prevent sleep? If so, time is for action.

 

The best solution

bankruptcy

Conducting a meeting with a bankruptcy trustee is what you need to do right away. This expert in financial health can lead you to the best solution to your situation from the first meeting. Are you confused and talking about problems with a foreign stranger? Does the banker frighten you? Get yourself together! First, say that this “alien” is a financial reorganization professional who will guide you to a new beginning. You are not the first person (and certainly not the last) to ask for help. And be aware that before you have to use the Law on Bankruptcy and Insolvency there are several other solutions.

 

Understand the debt

Understand the debt

Very often, people go into excessive debt because they do not have a personal or family budget. What are your income and monthly costs? Do you know? If you have not set up a budget or if you can not balance it, the trustee will need time to review it with you. When you understand why you are debts, simply setting a budget can help you regain control over your finances.

 

Debt consolidation

Debt consolidation

If you have a stable job and your debt ratio is not too high, the bankruptcy trustee may propose to carry out debt consolidation with a financial institution. This solution offers the advantage of simplifying financial management (one lender, one payment) and generally allows you to take advantage of a lower interest rate than your creditor demands.

 

Thanks to the consolidation loan, the debt will become less burdened. It is possible to take steps to obtain debt consolidation with a financial institution of your choice, not to go through the bankruptcy trustee’s office. However, keep in mind that each consolidation request was recorded in your credit file.

 

Make the right decision

Make the right decision

Other solutions include:

  • Negotiations with creditors;  Voluntary placement (a measure to pay off debts by giving a certain part of the income to the Court, which then distributes that amount to all creditors);
  • Consumer Proposal (formal contract for obtaining creditors’ contracts to change debt repayment terms);
  • Bankruptcy.

If applicable, the bankruptcy trustee shall apply in order to explain in detail every single solution. It will help you make the right decision. If it turns out that bankruptcy is inevitable, the trustee will ensure that all your rights are respected.

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