4 Pillars Shares the Top Alternatives to Bankruptcy in Canada

While personal bankruptcy is an option for those who are having financial trouble, it isn’t the only option available. 4 Pillars has helped families across the country restructure their debt and get back on track. There are a few options besides bankruptcy available for Canadian citizens from debt consolidation loans to better personal budgeting. We’ll share some of your options, so you can make an educated decision about what is best for your specific situation.

Personal Budgeting

The first thing to consider if bankruptcy is on the table is whether you can afford to repay your debts on your own. The best way to answer this is by building a budget. This gives you insight into how much money you have available to pay down the debts you have. After you have done that, take an inventory of what debts you have, what their monthly payments are, and how long it would take you to pay them down. If it’s going to be for many years, it might be best to look at another option.

Debt Consolidation Loans

With debt consolidation, all of your outstanding debts are moved into a single loan. If you qualify, the money will be used to repay the debts, leaving you with a single loan each month. Another advantage to this option is that the loan will often have a lower interest rate than your other payments did. You will have to make payments, but it’s more convenient and can be easier, especially if the payment amount drops.

Debt Management Plan

Reputable debt counseling agencies like 4 Pillars can also help you review the options for debt management plans. This is often an option if you have only a few small debts to consolidate or you have less than great credit and believe you may not qualify for a consolidation loan through a conventional lender. You may be able to pay your debts with no interest or a much lower interest rate than you would have otherwise.

Other options include avoiding bankruptcy through a consume proposal or informal debt settlement. These options are less common but are excellent alternatives to bankruptcy and may be right for you, depending on your financial situation. To learn more about your options and speak with someone who can help you through the process, reach out to 4 Pillars. You can learn more about us at www.4PillarsDebtConsultants.ca.