2023-04-28
How do you know if you're insolvent?
Alternatives to Bankruptcy Bankruptcy Debt Solutions
The first step to handling financial difficulty is being aware of the situation. Are you insolvent or bankrupt? Here’s how to tell.
If you’re struggling with rising debt, at some point you may have thought about filing for bankruptcy. Before you do, here are five key questions you should ask yourself.
Calculate all of your outstanding debt – whether it’s for utilities, credit card companies or assets you have regularly schedule payments for. Don’t forget about personal debt as well – if a friend or family member lent you money, write it down. Putting down all of your debts on paper is always the best way to identify how much debt you actually owe and whether you have a rising debt problem.
Create a budget! Doing so is the easiest and the best way to know where your money is being spent and how much you have left after paying all expenses. By sticking to a budget, you may be able to correct your rising debt challenges by spending your money on things you need, instead of things you simply want.
Jot down a list of your assets, with the actual present value for each. This will give you an indication as to items that could be sold or where money could be borrowed against an asset. For example, you could remortgage your house or get a second mortgage to help pay off your debts, often at a lower interest rate.
Did anybody co-sign for a loan? Does your husband or wife have a second credit card under the same account? Look at each debt on your list and write down any other information that could help you get a clear picture of your rising debt situation.
There are always alternatives that need to be explored before filing for bankruptcy. Did you see your bank about the possibility of a consolidated loan or remortgaging your house? If you have special circumstances that could prevent you from filing for bankruptcy, they are always worth taking a look at.
If you’ve asked yourself these five questions and explored options to manage your rising debt, but still aren’t sure how to proceed, consider speaking with one of MNP’s Trustees. We offer free, no-obligation initial consultations to walk you through your options and determine whether bankruptcy is truly the best option for resolving your debt.
2023-04-28
Alternatives to Bankruptcy Bankruptcy Debt Solutions
The first step to handling financial difficulty is being aware of the situation. Are you insolvent or bankrupt? Here’s how to tell.
2022-04-19
Alternatives to Bankruptcy Bankruptcy Consumer Proposal Debt Solutions 3 Minute Debt Break podcast
After completing a Bankruptcy or Consumer Proposal, rebuilding your credit can feel nearly as daunting as getting out of debt. But just a few steps every day will get you where you want to go. The following steps will help you focus on your goals, outline your process and visualize the reward that’s waiting for you at the top.
2022-02-02
Lifestyle Debt Debt Solutions Bankruptcy Alternatives to Bankruptcy
Debt problems can strain relationships and cause stress for the entire family. If your spouse has met with a Licensed Insolvency Trustee and is (or is considering) filing a Bankruptcy, the impact on you will depend on the extent of your joint debt.