Your Options for Getting Out of Debt

How To Seek Financial Help With A Bankruptcy Trustee

For someone who is struggling with their finances, it can be difficult to know how to take action. Unmanageable debt, for example, could be causing you a lot of stress. Without any idea of how to fix the problem, you could be stuck in a holding pattern of making minimum credit payments, dodging collection calls, and accruing excessive interest and still be stressed.

Sometimes under stress, we tend to get stuck worrying. We might even delay coming up with a plan of action as we think and wonder how things went wrong. Sure, you need to know how your spending habits, saving habits, and income to lifestyle ratio have affected how much debt you owe, but the most important thing is what you plan to do about it.

In this difficult situation, it’s hard to know who to speak with for financial help and what advice to take seriously. To get out of that cycle of debt and onto a path to recovery, below are some of our tips.

Team Up with a Professional

A bankruptcy trustee can inform you on the best legal proceedings you can take to protect yourself and to work towards a debt free future. Your debt recovery plan requires some thought and knowledge of documents like the Bankruptcy and Insolvency Act, so trust a professional to guide you through the specifics of your debt recovery. A licensed insolvency trustee, also known as “bankruptcy trustee” may be just what you’re looking for!

You Want to Leave Your Debt Behind

Insolvency is by no means a prerequisite to seeking debt relief. If you’re not insolvent but you recognize some of the financial warning signs in yourself, a bankruptcy trustee can still help. With a trustee, you can discuss your financial goals, your long-term ambitions, the extent of your debt, and from there come up with a plan for debt relief.

Bankruptcy or Consumer Proposal?

A bankruptcy trustee will consider all of the pieces of your financial puzzle to determine how much you can pay per month towards your unsecured debt. Two processes, filing for bankruptcy and filing a consumer proposal, address large sums of debt and are designed to give the debtors a second chance.

The specifics of your debts and other finances determine which debt relief process is best for you. Typically, consumer proposals are good choices for those who have assets they do not want to lose as well as a steady source of income that would allow them to make regular credit payments.

Consumer proposals require some negotiation with the creditors, and there is always a chance the proposal could be rejected. Bankruptcy might be best for someone who couldn’t get a consumer proposal approved or for someone who needs a complete financial overhaul.

Debt doesn’t leave anyone without options, regardless of what it might feel like. A bankruptcy trustee can tell you everything you need to know to get back on track and they even offer credit counselling to prepare you for responsible spending and borrowing in the future.