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A new start may be just what you need, but bankruptcy cannot be the only option. There are other options that will bring relief, and preserve and rebuild your credit.
A bankruptcy trustee can explain the details of the following options and help you select the one that will work best for you.


Debt Consolidation Loan

What is it?

A debt consolidation loan gives you the money to pay off all your debts. In exchange you only have one
loan to repay. That’s one monthly payment and your former debts are paid in full!
You need to have good credit and assets to secure a debt consolidation loan. Any secured loans
(mortgage, auto) are not typically included in a consolidation loan.

How it will benefit you

You may be able to get your loan at a good interest rate and save yourself lots of money in the long run.
Plus, you only have to worry about making one debt payment (instead of several) each month.

Debt Management

What is it?

Debt management consolidates your debts into one monthly payment no matter how many different
creditors you are paying. This is not a new loan (unlike a debt consolidation loan), but a service that
helps you get in control of your debt.

You’ll usually get some financial counselling along with it, such as budgeting and money management.
Your counselor can help you negotiate with your creditors to work out a repayment plan. You will make
one monthly payment to the management agency and the agency will pay your creditors.

How it will benefit you

You will be able to repay your debts in full and have the time you need to do it. Your counselor might be
able to get interest rates lowered and fees removed.

Consumer Proposal

What is it?

The consumer proposal is a legal process that a trustee assists you with to present to your creditors a payment plan. For example, a person who is in debt who is employed and can’t make a minimum payment, but can never get ahead.

That person can create a manageable offer and pay it to settle their debt instead of filing for bankruptcy.
Creditors are willing to agree to consumer proposals because the alternative is that you file for
bankruptcy and they get none (or very little) of their money. This way they at least get some of it.

How it will benefit you

A consumer proposal is the best of both worlds. You can avoid bankruptcy and make manageable
payments. As long as you have assets and income this is a great solution to a financial crisis.

Allow one of our trustees or professionals to help you find an alternative to bankruptcy. Call 519-310-3733 or request a free consultation with our online form.