For the many Lenders who keep abreast of the news, there is no point in repeating the recent news that nearly half of Torianers live within $ 200 of the insolvency threshold, and each month! This statistic alone should remove the stigma attached to over-indebtedness, as far too many people are affected to feel reluctant to seek help.

But who to refer to Lenders to consider the different options available to you in case of over-indebtedness? In fact, depending on the specificities of your situation, you may need to be accompanied by a financial advisor in Kemp, a mortgage broker or a trustee in bankruptcy. All this depends on your particular needs and this article is voluntary to offer you solutions to ensure that you meet a professional with full knowledge of the facts! 

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Why is it more beneficial to consolidate your debts?

Despite the focus on the pros and cons of the consumer proposal, the fact remains that a much simpler and more lucrative solution is offered to you!

You guessed it, it’s about debt consolidation. Unlike the two previous options, consolidation saves a lot of your credit. While bankruptcy will drop your rating to R9 and as the consumer proposal to R7, debt consolidation will appear on your record as a loan!

By the way, how does such a loan work? By approaching the bank with your debt problem, it will review your credit report and depending on the quality of the debt, it will decide if you are eligible for a consolidation loan. If this is the case, the bank will pay your debts for you and you will only have to repay the bank at the interest rate associated with the agreement!

There is no point in explaining that the rate for such an arrangement is generally lower than the rate you currently pay for debts such as credit cards or personal loans.

But beyond any other possible benefit, it remains that the main benefit of debt consolidation at 1. DeDebt is found in the level of peace of mind. The agreement between you and the bank will be made in such a way that you are able to make each payment in full in order to avoid delays and the consequences that come with it!

In short, the nerve of war is that you will save money by getting a lower interest rate and avoid the damage you would suffer from personal bankruptcy or a consumer proposal.

As we mentioned, the decision to grant you or not the consolidation loan is at the discretion of the bank only! In the event of a refusal, the alternative options explained above can be solid options according to your case!

Put an end to the over-indebtedness, find a qualified adviser in Kemp!

Put an end to the over-indebtedness, find a qualified adviser in Lévis!

Do not become a statistic! You do not have to be part of the 50% of Torianers who live close to the poverty line every month. Licensed financial advisors and trustees in insolvency are running out of steam selling their services to people who, like you, are struggling to make ends meet.

What good points to Bankruptcy?

What good points to Bankruptcy?

Far be it from us to encourage you to go bankrupt, but the fact is that for many of you that might be unavoidable. Other well-known disadvantages that accompany bankruptcy, such as the seizure of property, lack of access to credit and the impact on borrowing history, bankruptcy still has some good sides.

Among these advantages, one finds first and foremost the release of the majority of debts. When you decide to go under the protection of the Bankruptcy and Insolvency Act, your seizable property goes to the licensed insolvency trustee, who will sell it to your creditors.

This has the effect of freeing you from a large part of your debts and starting anew. Those to whom you owe money will have no option but to wait for their turn to be paid according to the priority of the creditors, the guaranteed, priority and unsecured. Creditors considered to be secured are those who have secured the payment of their debt by means of a security, such as a mortgage. They are the first to use if your creditors were to compete in a bankruptcy.

In addition, if you were faced with debt-related claims, they will be automatically suspended by law when you file the necessary documents with the Superintendent of Bankruptcy. You will therefore become untouchable, and it will be up to your trustee to manage the whims of your lenders.

But do all debts disappear when declaring bankruptcy? No! Some of your claims will still be due. We are talking about anything related to support for your children or your spouse, if any, and anything related to the fines you may have received.

Does bankruptcy release student loans? The answer is yes, but under certain conditions! You must have completed your studies for at least 7 years without a full-time or part-time return in the meantime, otherwise the counting starts again.

In short, although bankruptcy does not hurt your credit report by putting it back to the lowest possible threshold and preventing you from obtaining long-term credit, this solution can still represent a new starting point for you!

Consumer proposal or how to save thousands of dollars!

Consumer proposal or how to save thousands of dollars!

Even if the bankruptcy has nothing of horror stories and urban legends that run rampant, it must be conceded that this is a last resort. Other options with less inconvenience exist. The consumer proposal is one of them!

Like bankruptcy, a proposal allows you to free yourself of a portion of your debt, which frees you from an immense burden. The consumer proposal process begins with the consultation of a trustee in bankruptcy who will try to advise you as much on the proposal itself as on its possible alternatives.

It is also the role of the trustee to put together a proposal that your creditors will accept. Indeed, they will have to vote between them to know if your proposal is rejected or accepted. Once the documents are filed, they will have 45 days to make a decision by majority, or 51%. The trustee will therefore study the chances that a proposal will work for your particular case even before starting the process in order to avoid wasting time on the parties involved.

The beauty of the proposal is that, like bankruptcy, it also involves a freeze of proceedings against you, which gives you undeniable peace of mind. You can no longer be seized by your creditors once the procedure started!

What happens if your proposal is rejected? The procedures that are suspended upon the submission of the proposal will resume, including the possibility of being seized. However, this refusal does not automatically put you out of business! You will have a second chance at batting and you can always submit a new offer if the first is declined.

So, in the case of an acceptance on the part of your creditors, they will give up a good part of their due, which will save you thousands of dollars! The payment plan is, by virtue of the far, limited to a maximum term of 5 years, which establishes a clear repayment schedule. In addition, payments may be made on a monthly or other basis, depending on the agreement reached. Here is a reason for the least convincing to go see a financial advisor or trustee in bankruptcy of the city of Kemp for advice on the procedure to follow!

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