how to avoid bankruptcy

Avoid Bankruptcy – How to Avoid Bankruptcy

BankruptcyCanada.com

Table of Contents

• Page 3: Avoiding Bankruptcy

• Page 5: Considering The Factors

• Page 8: What is My Best Option For Avoiding Bankruptcy?


Avoiding Bankruptcy

• In Canada many people have access to easy credit which can make getting trapped in money problems common but many people would like to avoid bankruptcy if possible.• In 2016 more than 100,000 people filed

bankruptcy or a consumer proposal in Canada.• There are ways to avoid bankruptcy if you are

struggling with your finances.


Avoiding Bankruptcy

• Before you make the decision about filing bankruptcy, you can speak to a bankruptcy trustee about available bankruptcy alternatives that can help you avoid going bankrupt.• Many people are struggling with paying their bills

and are considering bankruptcy and you do not have to feel guilty about bankruptcy as most bankrupts are honest, hard working people who fell into debt through no fault of their own.


https://bankruptcycanada.com/trustees1/

Avoiding Bankruptcy:Considering The Factors

• How bad is your debt? If you think you can get your debt under control by making budgeting and lifestyle changes then you can probably avoid bankruptcy without professional assistance.• However, if you feel your debt problem is serious

enough a bankruptcy professional can help you explore alternatives to bankruptcy that can help you get out of debt and avoid bankruptcy.


https://bankruptcycanada.com/free-confidential-evaluation/



• How is your credit history? If you are struggling with debt and are considering bankruptcy but would like to avoid bankruptcy you might be able to get your debt under control with a consolidation loan that allows you to refinance if your credit is good.



• What assets do you have? If you don’t have any assets then there might be more benefits to filing bankruptcy than seeking a way to avoid bankruptcy, although if you have significant assets and significant debt you should probably consider a consumer proposal.


What is My Best Option for Avoiding Bankruptcy?

• If you cannot get out of debt on your own and need professional assistance from a bankruptcy trustee but would like to avoid bankruptcy your #1 choice for how to avoid bankruptcy is to make a consumer proposal with your creditors.• A consumer proposal is a legal proceeding

administered under the BIA (Bankruptcy and Insolvency Act) by a consumer proposal administrator (only a government licensed insolvency trustee can act as a proposal administrator).


https://bankruptcycanada.com/bankruptcy-and-insolvency-act/


• When making a consumer proposal you will meet with your selected bankruptcy trustee / proposal administrator who will make an estimation on what percentage of debt you can repay over a period of time lasting for a maximum of 5 years based on your budget and what is fair to your creditors.

• Although your creditors can reject your proposal they are usually accepted because creditors would rather accept part of their money coming back than possibly much less than if you go bankrupt (One of the main rules of a consumer proposal is that your creditors must be in a better position if you make a proposal than if you go bankrupt).



• Contact a local bankruptcy trustee today at 1-877-879-4770 toll free or contact us online.



how to avoid bankruptcy

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