By Karina Frost


People who are barely meeting their needs are common these days. For these people, their income usually go into paying their debts. If they cannot take it anymore, then they will have to file for a petition on personal bankruptcy. This is for them to start over again with their life. Filing for this petition have its own benefits and risks, though.

Instead of filing for bankruptcy, one might want to consider using other better alternatives though. Bankruptcy should only be considered when there is no other alternatives left for you to take advantage of. When you want a better alternative to bankruptcy, then you should consider using consumer proposal Toronto.

This is a legally binding agreement between the debtor and creditor. This is basically put in place so that you are provided with an immediate protection from the debt collectors. The said agreement will also be your last choice to make arrangements for the partial repayment of all of your total unsecured debt owing.

When you file this agreement, the wage garnishments will usually cease immediately. The interest will also stop accumulating right from the date you have filed the said agreement. Aside from that, the collection companies as well as the creditors will not longer contact you for any payment since that is the law.

This option is definitely better than bankruptcy. Unlike in bankruptcy, you do not need to worry on liquidating all of your possessions just so you can pay your debtors even a portion of your debt. When it comes to this arrangement, you do not need to worry about paying the debts by selling your assets like your house or car.

Your credit score rating is a lot safer compared to when you file for bankruptcy too. The negative impact that will be put in place for your credit score rating will not be all that severe. Instead of the lowest score of R9 just like how it would be with bankruptcy, you will only be given a credit score rating of R7. This is better than R9.

Through this agreement, you should be able to pay off your debt still. When you are allowed that much, then you can surely regain the lost sense of control you got over your own life. It will also be helpful in improving your own self-esteem. You will find a resolution over that feeling of loss you feel.

Your creditors can also take advantage of this agreement. When they accept your agreement, they are still assured that you will pay for your debt. Unlike in bankruptcy where there is a chance that they receive nothing at all from the debtor, the said agreement is much acceptable to them. They will prefer this agreement because they are sure to receive something from you.

You should learn of the qualifications that one must meet to be able to file for this agreement. It is necessary that you meet the said qualifications if you want to file it, after all. If you are unable to meet the said requirements, then you will surely got no other choice but to file for bankruptcy or to choose some other alternative.




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