How to Avoid Bankruptcy - Learn About How You Can Avoid Bankruptcy & Get Out of Debt.

1. Avoid Bankruptcy –
How to Avoid Bankruptcy
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2. Table of Contents
• Page 3: Avoiding Bankruptcy
• Page 5: Considering The Factors
• Page 8: What is My Best Option For Avoiding Bankruptcy?
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3. Avoiding Bankruptcy
• In Canada many people have access to easy
credit which can make getting trapped in
money problems common but many people
would like to avoid bankruptcy if possible.
• In 2016 more than 100,000 people filed
bankruptcy or a consumer proposal in Canada.
• There are ways to avoid bankruptcy if you are
struggling with your finances.
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4. Avoiding Bankruptcy
• Before you make the decision about filing
bankruptcy, you can speak to a bankruptcy
trustee about available bankruptcy alternatives
that can help you avoid going bankrupt.
• Many people are struggling with paying their bills
and are considering bankruptcy and you do not
have to feel guilty about bankruptcy as most
bankrupts are honest, hard working people who
fell into debt through no fault of their own.
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5. Avoiding Bankruptcy:
Considering The Factors
• How bad is your debt? If you think you can get
your debt under control by making budgeting
and lifestyle changes then you can probably
avoid bankruptcy without professional
assistance.
• However, if you feel your debt problem is
serious enough a bankruptcy professional can
help you explore alternatives to
bankruptcy that can help you get out of debt
and avoid bankruptcy.
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6. Avoiding Bankruptcy:
Considering The Factors
• How is your credit history? If you are struggling
with debt and are considering bankruptcy but
would like to avoid bankruptcy you might be
able to get your debt under control with a
consolidation loan that allows you to refinance
if your credit is good.
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7. Avoiding Bankruptcy:
Considering The Factors
• What assets do you have? If you don’t
have any assets then there might be more
benefits to filing bankruptcy than seeking
a way to avoid bankruptcy, although if you
have significant assets and significant debt
you should probably consider a consumer
proposal.
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8. What is My Best Option for Avoiding Bankruptcy?
• If you cannot get out of debt on your own and
need professional assistance from a bankruptcy
trustee but would like to avoid bankruptcy your
#1 choice for how to avoid bankruptcy is to make
a consumer proposal with your creditors.
• A consumer proposal is a legal proceeding
administered under the BIA (Bankruptcy and
Insolvency Act) by a consumer proposal
administrator (only a government licensed
insolvency trustee can act as a proposal
administrator).
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9. What is My Best Option for Avoiding Bankruptcy?
• When making a consumer proposal you will meet with
your selected bankruptcy trustee / proposal
administrator who will make an estimation on what
percentage of debt you can repay over a period of time
lasting for a maximum of 5 years based on your budget
and what is fair to your creditors.
• Although your creditors can reject your proposal they
are usually accepted because creditors would rather
accept part of their money coming back than possibly
much less than if you go bankrupt (One of the main
rules of a consumer proposal is that your creditors must
be in a better position if you make a proposal than if
you go bankrupt).
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10. What is My Best Option for Avoiding Bankruptcy?
• Contact a local bankruptcy trustee today at
1-877-879-4770 toll free or contact us online.
BankruptcyCanada.com