bankruptcy is a dirty word!?

December 30th, 2010 by Questions

We are swimming in debt. Combined debt of $60,000 +/- (inc. Credit cards, consumer loans, consolidation loan, etc…)We have fallen behind on some of our bills. It has gotten to a point where some of the utility companies are threatening disconnection. I am wondering what the best course of action would be. At this point I would like to hear any options aside from the \”B\” word!

Posted from: British Columbia


One Response to “bankruptcy is a dirty word!?”

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

There are a few options that you could look at (i.e. consolidation loan, credit counseling, etc.) but with the kind of debt that you have identified the most likely way to avoid a bankruptcy is through the filing of a consumer proposal. A consumer proposal is a court sanctioned way to negotiate a settlement offer with your creditors which often allows you to pay a portion of the debt back over time. This is one of the most common ways of avoiding a bankruptcy but also bringing the monthly cost of the debt to a position where it fits into your monthly budget.

The best way to determine if this option is going to work given your situation and the type of offer you would likely have to make to your creditors (as this varies depending on the composition of your creditors, your available cash flow etc.) you are best to contact a local trustee directly.

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