A Bankruptcy Lawyer’s Blog

How to Find the Right Debt Solution and Try to Avoid Bankruptcy?

With uncertain financial times just around the corner, many North Americans will be faced with difficult challenges. The economic picture is simply not pretty with North Americans being laid off at an alarming rate, the real estate market constantly declining, and the stock markets losing ground daily.Many North Americans have high debt ratios and no job prospects on the near horizon. If you are in tough financial situation there are some help but you still have to be careful to not to create bigger debt issue by accepting any temporarily solution. Like always you have to use your common sense.

You should only consider taking this avenue if you are in danger of losing your car, house or your investments. If you are stressed out because of heavy debt load there are some companies which temporarily, at certain cost and risk, willing to help you out.

How You can Avoid Bankruptcy

Are you struggling with high credit card debts and cannot pay your payments on in time?You know that you have money coming in but you are short on time?Try to avoid bankruptcy?There could be a solution for you by considering consumer proposal.

What is and who needs Consumer Proposal

A Consumer Proposal can only be filed by residents of Canada.

U.S. residents can file a Chapter 13 Wage Earner Plan can help you which is similar to a consumer proposal.

A consumer proposal is a deal you make with your creditors. It’s a “win-win” for everyone. Your creditors get payments on what they are owed, and you don’t have to worry about your creditors taking you to court.

A Consumer Proposal helps you to adjust your payments to your creditors, by reducing the amount you owe them or extending the time you have to pay them back. Consumer Proposals can cut the debt you pay back by huge percentage.

Consumer proposals are good for the following people:

• people who don’t qualify for a bank loan
• for those who don’t want to go bankrupt
• and for those who are capable of making payments to creditors
• They need a certain amount of time to pay back their payments.
• Best suited for people with debts in excess of $5,000 to a max of $75,000.

How consumer proposal or Chapter 13 Wage Earner Plan can help you?

Many Canadians benefited from the Consumer Proposals because of the following reasons:

• They only have to repay a portion of the debt they owe.
• Once they file, their interest rate freezes. No more unexpected interest rate increases.
• They get more time to pay off their creditors.
• One monthly payment means they don’t have to deal with multiple creditors.
• Creditors are stopped from taking legal action against you

What is covered by Consumer Proposals?

Consumer Proposal only covers unsecured debt, which is not tied to any asset. Unsecured debts include:

• Credit Cards
• Utility Bills
• Cell Phone Bills
• Lines of Credit
• Personal Loans
• Department Store Cards

In order to get accepted to qualify for consumer proposal first the candidate has to file for the necessary paper work and has to get approved by the committee.

For professional advice and instant help, please contact your nearest office.

Laszlo about debt solutions. You can learn more by visiting my blog “Debt Help” http://dept-solution.blogspot.com