What forms of debt solutions are there?One of the most common questions that I am asked is “What options do I have to deal with my debts?” There are several answers to this question depending on where you are in the debt cycle and the level of debt you are carrying. Each individual’s circumstances are different and hence requires an individual analysis. The range of options may include one or more of the following:
- Reviewing your budget, spending habits and devising a debt repayment plan;
- Restructuring your debt through a consolidation loan;
- Self-negotiating a settlement offer directly with your creditors;
- Dealing with your creditors through a more formal process such as the Orderly Payment of Debts;
- Making a formal offer of settlement with your creditors through a Consumer Proposal under the Bankruptcy and Insolvency Act; or lastly
- Making an assignment in bankruptcy when no other option is viable.