There are several alternatives available to you, depending on the extent of your financial difficulty, and the amount of your current income.

Some preliminary alternatives you may try are:

✔    Increase your income while maintaining your standard of living.
       Then, use your extra income to pay down your debt.

✔    Reduce your expenses and your standard of living.
      Then, use your savings to pay down your debt.

✔    Convert your nonessential assets into cash.
       Then, use the cash to pay down your debt.

If you have a steady income, then some people might try one or more of the following options. I caution you to give these options very carful consideration before attempting any of them. Be warned!

✘    Contact your creditors directly to explain your situation.  Ask them for their
       cooperation in extending the term of your credit and reducing the payment
       amounts. (Read more…)

✘    Obtain a debt consolidation loan.  A consolidation loan will allow you
       to reduce your payment burden to one monthly payment, usually at a
       lower interest rate. (Read more…)

✘    Use a Debt Settlement Service to assist you in making a settlement with
       your creditors, by seeking creditor agreement to extend the term of your
       credit, reduce payments, or reduce the amount of your debt. (Read more…)

✘    Attend a Credit Counselling Service.  They will assist you with your money
       management until you get back on track. (Read more…)

If none of these solutions are adequate to resolve your indebtedness, then you will need to seek expert professional advice from a Licensed Consumer Proposal Administrator /  Licensed Insolvency Trustee.

A Licensed Administrator / Trustee is the only person licensed by the Canadian Government through the Office of the Superintendent of Bankruptcy who canlegally stop your creditors.

✔    A Licensed Consumer Proposal Administrator will assist you in filing
       a Consumer Proposal under the Bankruptcy and Insolvency Act to reduce
       the amount of your payments and eliminate your debt.

If none of the above solutions are possible for you, then your final alternative is to file personal bankruptcy.

✔    A Licensed Insolvency Trustee will assist you in filing                       Personal Bankruptcy under the Bankruptcy and Insolvency Act
       to eliminate your debt.

You should note filing a Consumer Proposal or filing Bankrutpcy are legally binding on all your unsecured creditors. From the time of filing onward all your creditors must deal directly with the Licensed Consumer Proposl Administrator / Licensed Insolvency Trustee.