Try Debt Settlement. Avoid Bankruptcy.
What is Debt Settlement?
Debt Settlement clears your debts through negotiations with your creditors. Debt Settlement is used to eliminate unsecured loans, lines of credit, maxed-out credit cards, outstanding bills, and other personal debts.
We don’t recommend the DIY (do-it-yourself) approach to Debt Settlement. If you opt to hire someone, it’s crucial you retain a licensed legal professional to negotiate and settle your debts.
In most Provinces, debt negotiators must either be a lawyer or hold a debt negotiator license issued by the Ministry; otherwise, it’s illegal to provide this service. (Certain other professional licensees may be permitted to negotiate debts, per applicable Provincial laws.)
Furthermore, consider the opposing collection agents you will face. They are trained to interrogate you, with the intention that you pay as close to the full amount as possible. We deal with them every day and successfully settle with these collectors, up to 75% discount on amounts owed.
(Otherwise, our clients would face the full payment of their outstanding debts, including the accumulated high interest, which can be financially crippling.)
How Does Debt Settlement Work?
We have various ways to raise funds for clients and then we make an offer to each of their creditors, for less than the balance owing. If the creditor concedes to settle, then the debt diminishes upon payment of the agreed-upon reduced amount. The client is forever free of the financial burden.
What is Bankruptcy?
Bankruptcy is a court process that allows individuals and businesses to discharge their debts. Overall, the process can be very complicated and tedious, not to mention it’s public and remains a searchable record. Bankruptcy also remains on the consumer’s credit report for up to 9 years, making it harder for them to get approved for loans in the future.
How Does Bankruptcy Work?
Bankruptcy may require liquidating assets to pay back creditors. Typically, assets can be salvaged if substantial penalty payments are made, as ordered by a judge presiding over the Bankruptcy. It is mandatory to surrender all credit cards and other forms of credit.
Bankruptcy should be the last resort: it’s a harsh legal procedure that can impose restrictions on your life and impacts credit negatively for several years.
What is Best for You?
When you can no longer afford to pay back your debt, seek help from licensed legal professionals, who can contribute to a better outcome.
In summary, Debt Settlement is typically a much more streamlined process, that is less invasive and less controlling of your life, and more self-directed. By the end of a Debt Settlement program, your debts should be eliminated, removing obstacles to rebuilding your financial life.
Bankruptcy must follow the strict guidance of the Court. It may include assets loss and Bankruptcy stays on your credit for up to 9 years, making it harder to move on with your future life goals.
The goal should be to have a quicker and less impactful process for handling your debts. There are many factors that can cause debt, but there are ways to overcome it and carry on with life. Give us a call at 1.866.570.9988 or email us through our contact form.