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Credit counselling is a popular bankruptcy alternative.
Non-profit credit counsellors who are members of the Ontario Association of Credit Counsellors can contact your creditors and file what is called a Debt Management Plan. In a debt management plan all of your creditors (the people you owe money to) are paid in full over up to a five year period. In most cases they will agree to waive all future interest charges so that all of your payments go toward repaying the principal owing.
For example, if you owe $36,000 on credit cards and a bank loan, you could file a Debt Management Plan where you pay $1,000 per month for three years to fully repay your debt.
Debt Management Plans are a great option if you have a good job and can afford to repay your debts, but you require time to make the payments.
Call 1-866-345-4801 to speak to a certified credit consellor and set up an appointment.
If you are able to pay your debts in full, but just require some time, a debt management plan, or credit counselling may be a great bankruptcy alternative.
If you cannot afford to pay all of your debt in full, the final bankruptcy alternative in Kitchener is called a consumer proposal, and you can read about it in our article Consumer Proposals in Kitchener.
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