Your debts are growing faster than you can make money, but you don’t know if you are at the point of declaring personal bankruptcy? Take a small break. Start by talking to a licensed insolvency trustee as to determine if a personal bankruptcy is the best option for you.
By letting a licensed insolvency trustee manage your debts, you can lower or maybe even free yourself of debts. It is possible for you to find yourself in a stable financial situation again without having to file for bankruptcy.
Here are three reasons why you should consider your alternatives before going down the path of a personal bankruptcy.
1. The impact on your credit report
Even if getting rid of your debts is a major weight off your shoulders, a personal bankruptcy isn’t the best solution.
The first time you file for a personal bankruptcy, it will be added to your credit record and will stay there for at least 6 years. If you are filing for a second bankruptcy, it will stay for 14 years.
After that, getting credit anywhere won’t be an easy task. Whether from a financial institution or loaners, it is possible that the impact on your credit record will lower your chances of getting credit anywhere. But, even if you do obtain credit, you have to stay cautious.
2. Personal bankruptcy: The last resort solution
Under certain circumstances, filing for bankruptcy might be the only feasible option. However, before thinking about doing all of the necessary steps to file for a bankruptcy, N. Séguin Inc. would like to invite you to explore the alternatives offered to you.
Take your time to discuss these options with your licensed insolvency trustee as to determine whether or not one of these options could be viable in your situation.
- Debt consolidation: Just think about it. Only one installment a month to help you get rid of the entirety of your debts. Debt consolidation is one of your options if you have the ability to pay off the entirety of your debts. They are then grouped under one single payment, oftentimes with lowered interest rates.
- Consumer proposal: With the help of your licensed insolvency trustee, it is possible to negotiate with your creditors in order to lower your debts. Sometimes, your trustee can even reduce up to 80% of your debts, and that without having to pay interests.
If those options cannot be applied to your situation, a personal bankruptcy is your last resort.
3. A bankruptcy does not fix what’s wrong
Think about the reason why you are there. Why are you currently seeking out all the information and the necessary requirements to file for personal bankruptcy? Bankruptcy might help you get a clean state but it won’t stop you from doing the same financial mistakes.
Even if it gets you a chance to start from zero again, you will still have to learn about healthy consumption habits and how to save.
Séguin Inc. suggests you wait a few months before taking a new credit card and to also always pay your bills on time. This way, you will avoid late fees and will be able to enjoy your new and improved financial situation.
If you have any questions about personal bankruptcy or if you need the help of a licensed insolvency trustee, do not hesitate to contact N. Séguin Inc. today.