Negotiating debt vs bankruptcy. Of course you would not pick bankruptcy as your first choice. If you are considering the options of negotiating debt vs bankruptcy, you must be mired in serious financial difficulty and have few options available to you.
You need the help of a professional, licensed trustee now! Don’t be seduced by the bogus claims of debt settlement companies who promise to negotiate with your creditors for pennies on the dollar and get you out of debt in no time flat. Although you are being bombarded with messages like this on radio, television and online, don’t fall prey to these scam artists.
Debt settlement companies have already been banned in the United States and now several Canadian provinces have introduced strict regulations in the debt settlement industry. A professional trustee will evaluate your individual situation fairly and in an even-handed manner, and present you with a solid financial plan for moving forward and getting out of debt, including all of the advantages and disadvantages of negotiating debt vs bankruptcy.
According to the Office of the Superintendent of Bankruptcy Canada, consumers continue to opt in large numbers for negotiating debt vs bankruptcy.
- Negotiating debt – Consumer proposals rose by 4.8% in from January 31, 2012 to January 31, 2013.
- Bankruptcy – Consumer bankruptcies decreased by 4.1% in the same 12 month period.
What are the alternatives to bankruptcy? There are 3 Formal Bankruptcy Alternatives:
- Credit Counselling
Credit counselling is in reality debt counselling. Professionals provide assistance with a host of issues related to debt including budgeting, finding debt solutions, working with your creditors and rebuilding credit. - Debt Consolidation
Debt consolidation is a single loan that allows you to repay your debts to several or all of your creditors at once, leaving you with only one outstanding loan. - Consumer Proposals
Consumer proposals are formal offers made to your creditors under the Bankruptcy and Insolvency Act (BIA) to modify your payments. e.g. paying a lesser amount each month for a longer period of time and paying a total lesser amount than you owe. In a consumer proposal you are choosing not to go bankrupt so this is actually negotiating debt vs bankruptcy.
Ira Smith Trustee & Receiver Inc. is a professional, licensed trustee who can help you get back on the road to financial health Starting Over, Starting Now. A licensed trustee can properly advise you on negotiating debt vs bankruptcy. If you wish to do some self-study, please review our bankruptcy FAQS. But don’t delay. Contact us today.