what are my options

April 19th, 2010 by Questions

Currently going through an DMP @ 1100 a month. Was ok but am splitting with my significant other and can`t see myself continuing with this payment. Have been in it for 1.5 yrs. What are my options for decreasing the debt load and what are the impacts

Posted from: Alberta


One Response to “what are my options”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you are in the middle of a debt management plan and need to find a way to reduce the monthly cost, there really are 3 things you could consider.

1. Contact the people who are administering your debt management plan and see if there is any flexibility with the payment. Perhaps they would consider stretching the total plan over a longer period of time and thereby reducing your monthly payment.

2. Consider the filing of a consumer proposal to your creditors under the Bankruptcy and Insolvency Act. This solution is typically used by people who cannot afford (or get approval for) a consolidation loan or a debt management plan, but don’t want to file bankruptcy. In a proposal you typically offer to repay a portion of the debt that you owe. Proposals are an excellent alternative to bankruptcy, as they have a reduced impact on your credit, 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.
3. You can always consider the filing of a bankruptcy. If none of the other procedures listed is appropriate for you then bankruptcy may be correct solution. The concept behind bankruptcy is that you cannot afford to repay even a portion of your debts. To file bankruptcy you must meet with a licensed trustee.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)