Its Your Lucky Day There Are Alternatives To Bankruptcy

2016-03-28   minute read

Alternatives to Bankruptcy

If you find yourself financially struggling from one month to the next – you’re not alone. Given today’s economic climate, thousands of families across Canada find themselves in a delicate balancing act between keeping up with financial necessities while trying to pay down ongoing debt. Still, many people are afraid to reach out in fear of further financial repercussions. Meeting with a Licensed Insolvency Trustee, however, will likely reveal quite the opposite: you have options, and financial success is still attainable. I’d like to introduce you to one of the families we have recently had the opportunity to work with.

Meet Patrick, Catherine and Brian:

Patrick and Catherine have been married 15 years and have one child, Brian. Patrick is a computer technician at a local office and Catherine works at a grocery store. Brian is in grade 7 and is very active with hockey and golf. No one would know the struggles they are having with debt. The family’s credit cards had become unmanageable and the interest was building up. The stress was also causing real problems with Patrick and Catherine’s marriage. They didn’t want to file bankruptcy, but felt as though they had no other options. What could they do?

As stressed as Patrick and Catherine were, we had good news. Debt problems do not automatically mean bankruptcy. There are, in fact, other options available. Depending on your unique financial situation, a Consumer Proposal may be a viable alternative to bankruptcy. A Consumer Proposal is a debt settlement offer made to unsecured creditors to satisfy the debt for a reduced amount.

Patrick and Catherine met with one of our Licensed Insolvency Trustees for a free, confidential consultation. They explained their situation and how it was affecting nearly every aspect of their lives. Our trustee reviewed their credit card debt and current income situation and recommended a Consumer Proposal as a solution. Patrick and Catherine would make regular monthly payments to our office and, in turn, we would then make periodic payments to their unsecured creditors on a pro-rata basis. They would also need to attend two counselling sessions to gain insights on budgeting, money management, rebuilding credit and proper use of credit.

The Consumer Proposal stopped the credit card collection calls and the growing interest, as well as the stress of feeling trapped in a cycle of unmanageable debt. Today, Patrick and Catherine are able to manage the regular monthly payment to our office and the financial counselling helped them start saving towards Brian’s education fund and a future vacation – building their own pot of gold.

There are alternatives to bankruptcy. Depending on your situation, a Consumer Proposal might be a viable debt-relief solution. If you are struggling with debt, meet with your local MNP Trustee for a free, no-obligation consultation so you can find out what options are available to you and decide on your best route to financial freedom.

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