If you are filing for personal bankruptcy, it is important to understand precisely what the process entails. Personal bankruptcy is a legal process to rid yourself of your debts, designed to provide an honest Canadian who has fallen on tough times with a chance to restart financially. At Hudson & Company, we assist citizens of Calgary and surrounding areas file for bankruptcy.
To determine whether you qualify for personal bankruptcy, begin by asking yourself the following questions:
- Do you utilize credit cards to make payments on a regular basis?
- Are you able to only cover interest charges in your monthly payments instead of steadily lowering the overall obligation?
- Have you had your utilities shut off due to an inability to pay?
- Are your wages being garnished to help repay your debts?
- Do you obtain frequent cash advances to make ends meet until your next payday?
- Do calls from your creditors lead to your avoidance of answering the phone?
Prior to filing for personal bankruptcy, consider other possible solutions:
BUDGET, can you decrease expenses to allow principle payments on your debt.
Contact your creditors and explain why you have been unable to pay your bill. Most creditors will be willing to revise your terms to make your payments more manageable.
Obtain a debt consolidation loan from your financial institution. This may cover all of your debts and give you one payment per month. Interest rates will vary, so make sure to do some research.
Orderly Payment of Debts (OPD) – If you live in Alberta, you may apply for a Consolidation Order according to the Bankruptcy and Insolvency Act. A Consolidation Order sets the amounts and times of payments to the court. The court, in turn, will make payments to your creditors. Unlike personal bankruptcy, you must pay the creditors all of the money that is owed to them.
A consumer proposal made to creditors will be able to reduce your debt. It can also change your payment schedules, or it can be a combination of both based on your distinct situation.
If none of the above solutions work, your best option is bankruptcy. At Hudson & Company, our highly qualified team will help you through the process, leading you towards restoring the financial freedom that you deserve.
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