Question: I have about $50,000 in credit card debts. I got laid off two years ago, and it took me a year to find another job, which did not pay as well as my old job. I live in Ontario, so I am wondering if I should file bankruptcy in Ontario, or is there something else I should consider?
Answer: Yes, there are other debt management options you should consider. Bankruptcy should be your last resort, not your first choice. Here are some options:
First, now that you are back to work, is it possible to repay your debts on your own? If you can, that’s your best option, even if it takes a year or two to substantially reduce your debt.
Second, if you have high interest rate credit cards, a second option to consider would be a debt consolidation loan to consolidate your debts and reduce the interest you are paying.
Third, if the bank won’t give you a consolidation loan, another option is a consumer proposal. In a consumer prop0sal you make a settlement with your creditors. For example, the credit card companies may be willing to accept payments of $500 per month for 50 months, or $25,000 in total, and then right off the rest. Whether or not they will accept that deal depends on your personal situation.
If those options are not possible then yes, filing bankruptcy in Ontario may be your final option. You should consult with an Ontario consumer proposal administrator or an Ontario bankruptcy trustee to arrange for a free initial consultation to fully explore your options before you make a decision.
Today, with widespread availability of treatment services bankruptcy form on the Internet, online filing of bankruptcy is now easier and much of the story is that the process is very easy and saves time. If you know the legal demands associated with the bankruptcy filing and you know what forms you must complete and submit this regard, you do not even need to hire a bankruptcy lawyer to help you with the procedure filing bankruptcy.