For folks who once had remarkable financial freedom, bankruptcy may look like the end of the world. Not in Canada, however, as being in this legal status is often a last resort. The Office of the Superintendent of Bankruptcy gives both practical and formal solutions to make sure that financially troubled people can find an easier way to get out of debt. The following are just several of the easy solutions offered:
Right before declaring bankruptcy in Ontario, an individual should do an assessment of his total financial well-being. Staying with a realistic spending plan and living within one's means is a first step; the price of basic needs like food, shelter, and clothes should not go beyond an individual's income. In this manner, the excess can go to paying debts.
If the budget plan can only extend so far, getting a loan to clear up all outstanding obligations is likewise a sensible option. The point of a debt consolidation loan is to eliminate small accounts that are constantly being bumped off their limit by paying them off. Through this, the individual will only have to stress over paying the loan.
Government aid for student loans
Student loans, no matter how major, aren't enough of a reason to declare bankruptcy in Ontario Canada. The government has a Repayment Assistance Plan for individuals who are struggling with debt incurred while they were still pupils. Under the program, individuals can spend whatever amount they can pay for each month until the loan is satisfied.
Sit down with creditors
It always pays to be fair, even to creditors. The credit counselor the borrower hires can sit down with creditors to develop a plan to help settle the loan as quickly as possible. This can be through extended payment periods or decreased interest rates. The settlement can also be done over the phone if there's an existing degree of acrimony between parties.
If these practical options don't work, it may be time to check out the formal means of settling a financial obligation. To learn about these formal options, head over to ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02049.html.
Coping with Bankruptcy in Ontario