This is another installment of the MNP 3 Minute Debt Break.
If you’re struggling to maintain minimum monthly debt payments or don’t see yourself ever getting out of debt on your own, you may consider filing a Bankruptcy. It is one option… but it’s not the FIRST option a Licensed Insolvency Trustee or LIT will recommend. Nor is it always the best option for dealing with your debt. In fact, Bankruptcy should be your LAST course of action after exhausting other available avenues. That’s what an LIT will discuss with you during a Free Confidential Consultation that reviews your financial situation, challenges and goals. The right solution to your debt problems could be a combination of:
Budgeting … A monthly financial plan to help balance and monitor your income and expenses, and potentially free up more cash to pay down your debts.
Refinancing… Re-negotiating the term and interest rate on your existing credit accounts to reduce the monthly cost of your debts and make them easier to repay.
Liquidating… Selling high-value assets such as vehicles, recreational properties, sporting goods and jewellery to provide the financing you need to pay down your debts.
Consolidating… Combining all your debts into a single monthly payment with a lower average interest rate
Credit counselling… Working with debt professional to negotiate a non-legally binding payment arrangement with your creditors.
Consumer Proposal… Working with a LIT to negotiate a legally binding debt settlement with your creditors that will reduce the amount you owe
If these aren’t enough and you don’t qualify for debt consolidation or refinancing, you may consider filing Bankruptcy or a Consumer Proposal. But which one? Bankruptcy may be the right choice if you have had your wages garnished… are unable to make your credit card and loan payments on time… or owe more money than the value of things you own.
A Consumer Proposal may be the right choice if you owe unsecured debt which totals less than $250,000… need more time or a realistic plan to pay back your debts… want relief from accumulating interest and wage garnishments... or want to keep assets you might lose in a Bankruptcy.
There are many options available… but no matter what solution you’re considering to overcome debt, schedule a Free Confidential Consultation with an MNP LIT before making any life-changing decisions. An MNP LIT will provide an unbiased opinion about your best path forward and ensure you have all the information you need to make the most informed choice possible. Everyone’s debt situation is different, but you can find the solution that works best for you and find the permanent financial fresh start you deserve.
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