I have been in a poor financial state for a couple of years, and fear that I am in over my head. I am scared to declare bankruptcy, however, am not sure that I have an option. I am not sure whether bankruptcy or perhaps a consumer proposal would be beneficial for me, as I do not know the extensive repercussions of either. I have recently discovered the option of credit counselling and wonder if it perhaps best for me? I would like to be able to chose an option that has the least impact on my future credit rating. I am about 20,000$ in debt (total) which include two credit cards, a personal loan and overdraft of 5000$. What do you believe is best for me?

Posted from: Quebec

One Response to “Worried”

A licensed trustee said...

Based on what you’ve written, there’s no way to tell which solution will make the most sense for you. I can tell you that both credit counselling and a consumer proposal have the same affect on your credit report (R7), while a bankruptcy will give you an R9. It really comes down to how much you can afford to repay of the debt.

My best advice – contact a trustee in your area and ask them to review your situation.