November 5th, 2008 by Questions
what can i do to take care of a business loan and credit card debt, with no collateral, and no co-signer?
Posted from: Ontario
November 06, 2008 at 10:07 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
In this environment, probably not a lot. The banks have significantly tightened their lending practices making it very difficult to get any additional credit. So you may want to contact a Credit Counseling agency as they usually offer a voluntary program where your debts are pooled together (they aren’t actually paid off) so that you are only required to make a single monthly payment to a non-profit counseling agency. As you make your payments the agency forwards funds to each of your creditors in proportion to your total debt. The advantage of this procedure is that usually the interest on your unsecured debts is reduced to prime or even eliminated. You are required to repay 100% of what you owe, but because of the reduced interest your monthly payment is much lower than all of your minimum payments would have been without the plan.
Or alternatively you may want to contact a local trustee to discuss filing a Proposal to Creditors (also called a Consumer Proposal)- this solution is used by people who cannot afford (or get approval for) a consolidation loan or a credit counseling plan, but don’t want to file bankruptcy. In a proposal you offer to repay a portion (perhaps 100%) of the debt that you owe. Proposals are an excellent alternative to bankruptcy, but they are not well known so I suggest you contact a local trustee and ask them about proposals if you are interested in this solution.
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