What are my Hamilton bankruptcy alternatives?

At some point in their life, everyone is faced with financial problems and can’t pay their bills. It doesn’t matter how much you owe, or even who you owe – if you haven’t got enough money, someone is not going to get paid when you can’t pay all your bills.

If it’s a short-term problem, you can probably weather the storm, but if it goes on month after month, sooner or later you’re going to face some hard choices.

What happens if I don’t pay my bills?

Depending on your general payment history, your creditors (the people to whom you owe money) may allow you to miss a single payment and their response will be a letter politely requesting payment. If you miss a second payment, the letter will be more insistent and it might be followed by a phone call. It’s when you miss the third payment that trouble typically begins. In most cases, your account will be turned over to a Collection Agency for processing.

What are my alternatives when I can’t pay my bills?

If you are having problems paying your bills, here are some alternatives:

1.  Work it out on your own. If you only have a few debts managing them on your own may be a simple matter of creating a budget.  Use your budget to determine if you can increase your income or reduce your expenses each month. In other words, perform budget analysis and see if you can find a way to pay your bills on your own.  Reduce high interest debt first and get caught up on late payments.  This will also help you repair your credit and put you in better debt shape for the future.

2.  Consider a debt consolidation loan.  This will work if you have largely high interest credit card debt but still have a reasonably good credit rating.  Beware of services offered as ‘debt consolidation’ that are really forms of pay as you go debt settlement and are not really a new debt consolidation loan.  These schemes can be quite costly and may not work.

3.  Credit counselling is a good option if you are able to pay off all of your debts but need a little coaching.  A debt management plan is a debt repayment plan where you repay all of your debts but with one lower monthly payment.  You are still however required to pay back everything you owe and interest may be reduced or eliminated only if you make all your payments.

4.  A consumer proposal to your creditors is an arrangement you make with the help of a Trustee in Bankruptcy to settle your debts for less than you owe.  You make one monthly payment to your trustee and at the end all of your unsecured debts are eliminated.5.  Always the last resort, sometimes you may need to file bankruptcy.  Your trustee will meet with you and review your personal situation and help you determine if bankruptcy or one of the alternatives to bankruptcy best suit your individual circumstances.

What do I do now?

The purpose of this page was to make you aware of the alternatives that are available to persons, like you, who are experiencing financial difficulty and can’t pay their bills.

If you are experiencing money and financial problems and can’t pay your bills, contact us to discuss your specific situation. All consultations are provided free of charge.

Don’t put off peace of mind – contact us today for help paying your bills.

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