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If you’re searching for ways to get help with your growing debt, you’ll no doubt encounter many different options. It can be confusing to know which solution is best for you and your family.
That’s why the very first step you should take is to contact a Licensed Insolvency Trustee.
How can a trustee help with my mounting debts?
Licensed Insolvency Trustees are the only professionals authorized and regulated by the Office of the Superintendent of Bankruptcy to assist debtors like you with Consumer Proposals or bankruptcies.
But that’s not all. Trustees are able to offer you a full range of debt relief help.
Here’s how it works.
In your initial, free consultation, your trustee will review your financial circumstances and discuss every debt relief option available to you, as well as their pros and cons.
You’ll even receive personal advice from the trustee as to which might be the best way to achieve debt relief in your particular situation.
The sooner you seek professional help with your debt, the more options you may have available to you. These options may include:
Creating a household budget can help you manage your income more efficiently, as well as help you set aside money to repay outstanding debts. But not all of us are experts in this arena. A trustee can help you create a reasonable and manageable budget you can stick to.
Credit Counselling in Ontario
There are both not-for-profit and for-profit companies across the nation offering credit counselling services. The beauty of seeing a trustee is that you’re assured you’re dealing with a seasoned, credentialed, and qualified professional whose motivation is to help you eliminate your debt.
Debt Consolidation Loan
If you have a stable source of income, and you’re able to qualify for a consolidation loan, this option allows you to repay on multiple loans through just one monthly payment at a lower interest rate. If your credit is impaired however, you may not qualify for this type of loan.
Debt Management Plan
This is a proposal made to your creditors by a counselling agency on your behalf. Your credit counsellor negotiates down the interest on your debt with each of your creditors so that you can work on paying back what you owe. You’ll pay back the entirety of your debt in affordable monthly payments to your counsellor, who then disburses same to your creditors. Keep in mind this option is not a legally binding agreement.
Debt Settlement Plan
In a debt settlement plan, you enter into a contract with a debt settlement company who negotiates repayment of less than your outstanding debt with your creditors. You make payments to the debt settlement company, who builds up a lump sum amount over several months to offer your creditors. Note that these firms are not licensed debt professionals. For this reason, many creditors refuse their settlement plans.
A Consumer Proposal is a proposal to your creditors to pay back just a portion of the debt owed. It requires the assistance of a trustee.
Your trustee helps you figure out what you can afford to pay each month based on your financial circumstances and negotiates the amount to be repaid with your creditors. You will need the majority in dollar value of your creditors to approve the proposal for it to be binding on all creditors.
One of the biggest pros of a proposal is that it immediately stops collection efforts by your creditors against you, including collection calls, garnishments, and lawsuits.
Bankruptcy discharges you from most, if not all your debts. Like a Consumer Proposal, you receive immediate protection from collection efforts by your creditors against you. It also protects certain of your assets that creditors would otherwise be able to take.
That said, bankruptcy is considered a debtor’s last resort. That’s because of all debt resolution methods, bankruptcy will have the most impact on your credit rating.
Get Debt Help in Windsor, Ontario
If you’re having financial difficulties, you should contact a Licensed Insolvency Trustee immediately. We’ll review your financial situation and advise you on your options so you can choose the solution that’s best for you and your family. Let us help you get back to better financial health. Contact us today.