When you’re facing what seems like unmanageable debt, you need to turn to trustworthy and accredited professionals for the proper counselling about your next steps. It might be that you’ve turned to unhealthy spending habits or behaviours as a way to cope with the stress of overwhelming debt.
With the help of an empathetic and skilled Licensed Insolvency Trustee (formerly known as a bankruptcy trustee in Canada) to educate you on the best techniques for debt relief, your situation can go from bleak to promising. You might have heard many different things about debt relief methods, or perhaps you’ve heard about debt consolidation loans.
A good bankruptcy trustee will educate you on the best methods of debt relief and steer you away from high-interest loans that only work to ultimately compound the problem. When your credit is already poor, the chances of getting a loan with low interest are incredibly slim. Bankruptcy trustees can give you the best insolvency advice that you need to recover from debt.
Proper debt relief is more than just a plan of action for paying back your creditors. It acknowledges the reality of how much you can really pay and actually reduces the total amount of unsecured debt that you owe. The firm David Sklar and Associates can help you understand what methods of debt relief are available to you and what path makes the most sense for your situation.
When your debt is so high that you can’t climb out from underneath it, you’ve reached insolvency. While this can seem scary, finally acknowledging that you cannot make your credit payments is an important step in turning the tables on debt.
Why is unsecured debt unique?
Unsecured debt comes in many forms, it might look like credit card debt, student loans, payday loans, a line of credit, medical bills, and more. When it comes to unsecured debt, there isn’t a physical asset tied to the amount you owe, meaning that creditors are often willing to negotiate the terms of repayment (the idea being that getting back a portion is better than getting back nothing at all).
Unlike a car or a property, unsecured debt cannot be reclaimed physically. That’s why creditors use tactics like hiring debt collectors or garnishing the debtor’s wages to earn back what is owed. Unsecured debt often comes with high interest rates as is the case with credit card debt and payday loans
Bankruptcy trustees advise you on the best path forward
In order to formerly go through with the application process for government-regulated forms of debt relief such as a consumer proposal, bankruptcy, or Division 1 Proposal, you need a bankruptcy trustee to file on your behalf.
Bankruptcy trustees in Canada have the accreditation necessary to file for these processes and they know the details of the Bankruptcy Insolvency Act. The advice they give is based on a thorough understanding of how your government’s debt collection system works. When insolvency has become your reality, bankruptcy trustees will evaluate and assess your situation and help you settle on the best method of debt relief for your personal financial situation.