Credit Counselling: Is it an alternative to bankruptcy in Cambridge?
Most of the people I meet at the Hoyes Michalos personal bankruptcy office in Cambridge, Ontario, do not want to go bankrupt. Since I also view bankruptcy as an option to use if no other options are available, I always explain your bankruptcy alternatives, including dealing with your financial problems yourself, getting a debt consolidation loan, and filing a consumer proposal.Another popular alternative is called credit counselling. In Cambridge, there is one not-for-profit credit counseling agency: Catholic Family Counselling Centre. Their credit counselling services are available to all residents of Cambridge and Waterloo Region, and neither religious affiliation nor ability to pay is ever a determinant of service.
The credit counsellors at Catholic Family Counselling Centre can help you with budgeting, and will help you deal with your creditors through a debt management plan. In a debt management plan your creditors agree to accept payment in full over a period of no longer than five years, and in exchange agree to waive all further interest.
Debt management plans work best if you have the ability to repay your debts, but need help dealing with your creditors. For example, if you have $10,000 in credit card debts, and can afford to pay $500 per month, a debt management plan may be a good solution for you. However, if you have $50,000 in debts, a debt management plan won't work, because it would take too long to repay your debts. In that case a consumer proposal or bankruptcy may be more appropriate.
We can help you calculate the payments you may be required to make in a debt management plan, a consumer proposal or abankruptcy, so please contact us to help you make a decision about which option will best help you get back on track financially.
posted by J. Douglas Hoyes, CA, Trustee @ 8:20 PM
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