One of the first questions that people ask of a trustee in bankruptcy is: "Can I avoid bankruptcy?" Deloitte trustees are well trained and are equipped to help you explore all of your options. There are many options to consider before bankruptcy. Bankruptcy should always be your last option.
Some alternatives to bankruptcy in Canada include:
Debt consolidation: Debt consolidation is a loan which combines all of your debt payments into one. A debt consolidation loan may have a lower rate of interest than credit cards.
Learn more about debt consolidation
Informal proposals: With this kind of arrangement, a trustee may be able to contact your creditors directly and negotiate with them to pay off only a percentage of your debt, or pay down your debt over a period of time. Informal proposals work best in situations where there are a relatively small number of creditors. Your creditors must agree to it, and you may have to sign a contract.
Orderly payment of debts (OPD): This option is only available in some Canadian provinces - Alberta, Saskatchewan, Nova Scotia, and Prince Edward Island. The OPD is a legal proceeding which enables you to consolidate your debt. You are protected from property seizure and/or wage garnishees under his order.
Proposals to creditors: Another bankruptcy alternative is the consumer proposal. A consumer proposal must be filed through a licensed trustee in bankruptcy. Typically you will only pay a percentage of your debts, based on new terms with all of your creditors. The amount you pay depends on your personal situation and the amount of money you make.
Learn more about consumer proposals
Other options: There may be other alternatives to avoid bankruptcy. The starting point is a privated, in office assessment with a Deloitte bankruptcy trustee who will answer all of your questions.
Personal bankruptcy: If you can't afford any of the options listed above, bankruptcy is an option to help someone with money problems to get a fresh financial start. When you declare bankruptcy, a Deloitte bankruptcy trustee deals directly with your creditors for you, and you have the opportunity to be relieved of most of the money you owe.
Learn more about personal bankruptcy
Doing nothing isn’t an option – get started today!
Unfortunately, if you in a difficult financial situation and you don’t follow one of the above options, your creditors will continue to demand money using collection agencies, and may take legal action against you and may seize assets and/or more income. Early intervention is key.