Avoiding Bankruptcy

Assessing Your Alternatives To Bankruptcy

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. The right solution for you depends on your personal circumstances and the severity of your debts.

Consumer Proposals

If you:

  • Are unable to repay your debts in full
  • Owe less than $250,000 (not including your mortgage)
  • Have a stable source of income
  • Need creditor protection
  • Need to keep your assets
You may be eligible for a consumer proposal. Read more

Debt Management Plans

If you:

  • Can repay your debts in full
  • Owe less than $15,000
  • Have only a few credit card debts
  • Need relief from interest and penalties
  • Need budgeting help
A debt management plan may work for you. Read more.

Debt Consolidation Loans

If you:

  • Can repay your debts in full
  • Need to lower your monthly payment
  • Have reasonably good credit
  • Have a stable source of income
  • Have collateral to offer for security
You may be able to consolidate your debt. Read more.

Pay It On Your Own

If you:

  • Have only a few small debts
  • Can repay your debt on your own within a reasonable period
  • Can develop a budget to find expense savings

You may be able to develop a repayment plan on your own to eliminate your debt. If you fall behind on your payments, you should consider one of the other three options.