Initiating Bankruptcy proceedings may be appropriate if you’ve considered all your other debt-relief options. If you cannot pay your debt as it comes due and the net worth of your assets is less than the total amount of your debt, Bankruptcy may be an option.

These terms do not mean the same thing. Bankruptcy is a formal legal process whereby you assign your non-exempt assets to a Licensed Insolvency Trustee to be relieved of your unsecured debts. Insolvency is a term that means you are unable to pay your debts as they come due, or your total assets are worth less than the amount of your debt. You must be insolvent to file for Bankruptcy but you are not automatically Bankrupt just because you are insolvent....

If you have multiple debts that have become difficult to keep track of, there are a few different ways to consolidate them into a predictable and manageable monthly payment. Home Equity Loan Also known as taking out a second mortgage, a home equity loan can provide lower interest rates and a way to get a handle on your credit card debt. Line of Credit A line of credit from a bank or credit union can help you pay off high...

If you're feeling overwhelmed by bills, a debt consolidation strategy can help you get organized. Benefits of debt consolidation include: Planning out your finances becomes easier because you only have to make one debt repayment a month. You'll get your debt under control before bankruptcy is the only option. You'll pay off your debt faster by lowering your monthly interest rate and improving your credit over time. High...

A risk to debt consolidation could be premature confidence in your debt situation. You may feel your debt situation is under control, but if you fall back into bad spending habits, you can incur more debts and put yourself at a greater risk. If you are concerned about this, talk to your local Licensed Insolvency Trustee and he or she can come up with a debt repayment plan or recommend credit counseling services to help you pay off your debts effectively....

You can apply for a debt consolidation loan at any financial institution including your local bank, a credit union, or any lender with enough support to finance your loan. If you go with another lender, make sure to provide your monthly budget and a pay stub to show evidence that your income can cover the loan. A co-signer may be required to guarantee your loan. Other documents you may need to bring with you include: Information on assets...

Consolidating your debt is a good choice for those who have a satisfactory credit rating and sufficient income to pay back their debt in full. Individuals with higher debt, a lower credit rating or low income should consider pursuing a Consumer Proposal or Bankruptcy.

As this is not a formal legal process, you choose the debts which you would like to pay down with the new consolidation loan.