For many Canadians, personal bankruptcy may actually be the best path out of the severe debt burdens they face. However, the thought of declaring bankruptcy frightens many of us. So instead of learning what bankruptcy really involves, we look for alternative solutions to bankruptcy in Red Deer and all across the country.
While there are several options, they have significant differences, making some more appropriate for certain debt situations than others. If you have been searching the Internet in an attempt to identify these alternative solutions to bankruptcy in Red Deer and learn what they can do, you have undoubtedly uncovered some good general information. What are often missing are the specific details about how a particular solution fits your unique financial circumstances.
Here are three things Red Deer residents need to know about how to learn the alternative solutions to bankruptcy in Red Deer:
1. For specific answers, you will need to meet with a debt help professional.
2. There are significant differences across the sources of professional help.
3. There are only two legally binding alternative solutions to bankruptcy.
First, there is no way to determine what alternative solution to bankruptcy in Red Deer will be the best for your financial situation without knowing the situation. While you can create your own statement of financial condition, it will not cost you anything to get professional help to get that done. All three sources of professional debt help – credit counselors, debt solution companies, and licensed bankruptcy trustees – offer initial consultations at no charge.
Second, you need to know there are major differences amongst this trio of debt solution providers. Bankruptcy trustees are licensed by the federal government. Although their title would seem to say bankruptcies is all they do, that is not the case. The also offer something called a consumer proposal, which many debt experts feel is the best alternative solution to bankruptcy.
What’s more, their licensing requirements call for a rigorous series of educational courses and qualifying examinations. They undergo a background check from the Royal Canadian Mounted Police and the Office of the Superintendent of Bankruptcy sets the fees and commissions they charge for their services.
Neither credit counseling agencies nor debt solution companies are regulated in any way. There is huge variation in the fees and commissions they charge. While some belong to professional associations that have membership standards, it is entirely possible for literally anyone to hang a shingle over their door and call himself or herself a credit counselor or debt solution consultant.
Third, the alternative solutions you will learn from credit counselors or debt solution companies are not legally binding on your creditors. If your wages are already being garnished, the creditors do not have to stop. In addition, they can initiate legal collection activities against you at any time in the future.
There are only two alternative solutions to bankruptcy in Red Deer that will stop any collection activities underway and prevent any future action. One is an Orderly Payment of Debts, available only in the Provinces of Alberta, Saskatchewan, PEI, or Nova Scotia through a government approved credit counselor. The other alternative solution is the consumer proposal, available through licensed bankruptcy trustees anywhere in Canada.
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