Is bankruptcy my only option with all my debt?

November 6th, 2014 by Questions

Hi, I’ve managed to max my credit card out due to moving expenses, schooling fees, and personal irresponsibility ($12000). I’ve also been trying to juggle rent, bills, and student loan payments on top of that and feel like bankruptcy is my only way to go. Do I have other options? I feel like losing this debt would take an enourmous weight off of my shoulders.

Posted from: Saskatchewan


One Response to “Is bankruptcy my only option with all my debt?”

, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

There are several considerations that must be taken into account in determining whether bankruptcy is your best option such as; how much are you earning; what expenses do you have; your student loan (how much is owing, when was it obtained, is it dischargeable?, things such as your moving expense may be tax deductible if you moved to get closer to a job etc.

If you have good future employment prospects a Consumer Proposal may give you the opportunity to deal with your debts as well as your student loan. The key, whichever direction you choose to go is carefully budgeting of your resources. Depending on your income and your family responsibilities good budgeting may allow repayment of a $12, 000 debt over a reasonable period of time without resorting to a statutory solution. Clearly you should be meeting with a Trustee in bankruptcy who can help you assess all of these factors and come up with a solution that best deals with your concerns.

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