I don't want to go bankrupt...What are my Alternatives to Bankruptcy in Ontario?

No-one ever wants to declare bankruptcy in Ontario. However, if you are being threatened by collection agents, and if you worry about a wage garnishment, you need to review your options. Bankruptcy is an option, but there are a number of bankruptcy alternatives.

Before we review the alternatives to bankruptcy, it's important to understand the impact of not being able to pay all of your debts.

What happens if I don't pay my bills?

If you miss a payment on your credit card one month, there will probably be a short note on your next statement asking you to pay your bill. If you miss more than one payment, you may get telephone calls, collection letters, and perhaps even have your account turned over to a collection agent. Obviously you want to understand all of your options before a collection agent becomes involved.

What are my bankruptcy alternatives when I can't pay my bills?

If you are having problems paying your bills, here are some alternatives to bankruptcy:

	Create a proper budget.
	Use your budget to determine if you can increase your income or reduce your expenses each month. If you can cut expenses or increase your income, you may be able to use that extra money to repay your debt and avoid bankruptcy.
	Consider getting a debt consolidation loan.
	Explore credit counselling through a non-profit credit counsellor.
	Consider a debt management plan, also through a non-profit credit counsellor.
	Make a consumer proposal to your creditors.
	If no other option is viable, consider personal bankruptcy.

What should I do?

If you have more debt than you can handle, you should take action now. Your debts will not just magically disappear, so the sooner you take action, the sooner you will be able to stop the phone calls and sleep at night.

If you are experiencing money and other financial problems and can't pay your bills, we recommend that you contact a local bankruptcy trustee to discuss your specific situation. All consultations are provided free of charge, and all trustees listed on this site are licensed by the federal government. Get help today!