Bankruptcy Versus Credit Consolidation
Credit counseling can be a great way to help you deal with your debt before it gets to the point where you will need to declare that you are bankrupt. If you do need to continue to the point where you declare and start the process, you will need to speak with a bankruptcy trustee. Dealing with a bankruptcy trustee can help you deal with the ins and outs of the declaration procedure. It can also lead to alternatives that can help you avoid declaring bankruptcy but you need to start the process before they can be made available to you. Consumer proposals are one way that you can get back on your feet without filing for chapter 7 or 13.
With a consumer proposal, you meet with your creditors. You work with them in order to determine how much of your current debt they are willing to excuse if you continue to make regular payments. This is actually somewhat similar to the payments you would be making if you were bankrupt but they will often be higher.
The good news about a consumer proposal is that you can excuse a part of your debt but will avoid the mark on your credit history that bankruptcy will leave. If you want to get back on your feet sooner, you will probably prefer a consumer proposal. Of course, a trustee will take a look at both options and will be able to recommend the choice that is best for your particular situation.
You don’t need to think that declaring bankruptcy is the end of the world financially. However, it is a serious decision that can have long reaching impact on your life. Self help bankruptcy is not an advisable decision I would take to an attorney or a trustee that can make it easier for you to start working to a stronger future. Do not worry about getting credit cards after bankruptcy because within a couple of months you will be getting offers, trust me on this.
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