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Bankruptcy alternatives include:
A loan consolidation – this is with a financial institution usually and you try to get a loan to pay off all of your debt (with interest) and then you make 1 payment to that institution;
An informal proposal – try and negotiate yourself – 1 on 1 with your creditors – to have them accept a lower payment or amount. There is no formal protection from seizures.
A formal Consumer proposal – a new deal that you try and make with your creditors An offer that you make to your creditors (with the help of a licensed trustee) that allows you to :
- Make 1 monthly payment
- Eliminate the interest
- Can keep your paid and unpaid assets (provided that you have been up-to-date and continue to be up-to-date with payments)
For more information on alternatives to bankruptcy, please contact me directly or consult our Debt Help FAQ.