If you are struggling to repay bank loans, you are likely worried about how you’re going to handle the situation. You may have even be getting calls from the bank or from collection agencies about your debt. These calls can, understandably, be very stressful and lead to sleepless nights and days spent worrying about answering the phone or opening the mail.
The good news is that there are options available to those who are having difficulty repaying bank debt.
One of the first steps to finding relief is to speak to a Licensed Insolvency Trustee. A trustee is an individual who has received years of training, after which he or she is licensed by the government. Trustees have the experience needed to review your financial situation and provide you with information on the options available to you. Our trustees are available to help.
A trustee is trained and is bound to a strict code of ethics. This means that he or she will provide you with information on all of the available options that can help you handle your bank loans, not just the ones that he or she can administer. This is an advantage to working with a trustee over many other financial professionals, as others may only provide information on the one or two options they know best.
When you work with one of our Licensed Trustees in Bankruptcy, you are working with trusted professionals who understand all options.
Relief from Bank Loans
Unsecured bank loans can be included in the bankruptcy and consumer proposal process. These are both legal processes that can be administered by a Licensed Insolvency Trustee.
- A consumer proposal is a legal process through which a person makes an offer to his or her creditors. In most consumer proposals, a person offers to repay a portion of the debt that is owed in monthly payments for a specific period of time.
- Once the payments are made and the proposal is complete, the remaining outstanding debt is eliminated.
- A consumer proposal effectively reduces your debt to the amount of the proposal offer.
- Bank loans can be included in a consumer proposal.
If you are having difficulty repaying your debts, but are still able to repay some of the money that you owe, a consumer proposal could be a good option for you.
If you decide to file a consumer proposal, a trustee will review your financial situation and determine what a fair offer to your creditors will be. The offer will then be sent to all of your unsecured creditors, who will have 45 days to decide if they wish to accept it. If the majority accept, then all are bound by its terms.
Another option for those who are struggling with bank loans and other debts is filing for personal bankruptcy. Bankruptcy is also a legal process. It is designed to give a fresh start to those who are unable to meet their financial commitments as they become due. Filing for bankruptcy will eliminate most, if not all, of a person’s debt. There are certain exceptions like court ordered alimony payments
Effect of Filing Consumer Proposal or Bankruptcy
When you file for consumer proposal or bankruptcy, this fact is noted on your credit report. This can make it more difficult for you to get a loan in the future. However, despite what many believe, this situation is not permanent. Your credit report is not “ruined forever.” You can rebuild your credit rating by following good credit practices in the future.
It’s important to consider your current situation when you file for bankruptcy or consumer proposal While these processes may affect your credit rating, if you are in a situation where filing for bankruptcy or consumer proposal makes sense for you, there is a good chance that your credit rating has already been impacted by late payments or missed payments. Filing for bankruptcy or submitting a consumer proposal puts you in a position where you can rebuild your credit over time.
Speaking with a Licensed Insolvency Trustee can help you understand the effect of these legal processes and provide you with the information that you need to make an informed decision about your financial future. If you are struggling with bank loans or other debts and are unsure of where to turn, meeting with a trustee is a good step to take. Our trustees offer the initial consultation at no charge. Contact us today.
