Alternatives to Filing for Bankruptcy in Ontario

Your Options

There are a number of possible solutions to your financial situation. You may believe that filing for bankruptcy in Ontario is your only option. Although, bankruptcy is an option, there may be an alternative solution such as debt consolidation or making a consumer proposal.

In many instances, people who are considering claiming bankruptcy in Ontario, Canada, do not understand the process or the alternatives that may be more suitable based on their current financial situation. Here are a number of options to consider:

Do nothing

You may think that you can continue with your current financial situation on your own. This is always an option, but seeing as you are exploring this site, it may be time to consider a financial health check-up. Your current situation may require some minor adjustments and a Paddon + Yorke professional can help!

Credit Counselling

In many cases, this is all that is required to get you back on track and getting on with your life. Let the professionals at Paddon + Yorke provide you with better money management tools. We will review your present income and expenses in order to prepare a budget that meets your needs. Our knowledge and practical advice will assist you in making your budget work.

Informal Arrangements with Creditors/Debt Consolidation

After reviewing your current financial situation, we can give you a better understanding how credit works and provide sound advice on negotiating with your creditors. A realistic repayment plan may be your best solution. Or you might find that you have too many monthly payments, and a consolidation loan might help. This type of arrangement puts all of your debts together under one lower monthly payment. With these types of arrangements you shouldn’t continue to use credit or borrow additional funds as your financial situation could once again become out of control.

Consumer Proposal

A consumer proposal is an alternative to personal bankruptcy in Ontario, where you propose to your creditors a compromise. Whether it is an extension of your current payment terms or offering a percentage of the debt, we can assist in developing a plan that works for you. In general, a consumer proposal is normally offered to your creditors when you have significant monthly income or substantial value to your assets that you want to keep. Your unsecured debt must not exceed $250,000.00 and the completion of the proposal cannot exceed five years. For more information visit our consumer proposal page.

Bankruptcy

Claiming bankruptcy in Ontario, Canada is sometimes unavoidable. The bankruptcy process offers financial rehabilitation with the elimination of the majority, if not all, or your debts so that you may get on with your life. The effect of bankruptcy on your credit rating and assets along with your duties imposed upon you will be explained in great detail at your first initial consultation. For more information visit our personal bankruptcy page.

Paddon + Yorke Inc. is here to help you understand the range of options available to you. Rest assured that your initial assessment is free and you are under no obligation. Make that first step – contact us today for your free consultation!

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