Louis S. asked
“I have $17,000.00 in unsecured debts $12000 of it is credit card debts that are extremely past due. What options do I have when I cannot get a loan from any financial institution?”
ANSWER
Everyone that is in financial difficulty has the same basic options to deal with their debts; they can deal with their creditors directly and dig themselves out of debt on their own (possibly with the help of a credit counsellor), make a consumer proposal or file personal bankruptcy. Since you have said that your accounts are extremely past due, it is not surprising that you can’t get a consolidation loan from any financial institution because your credit rating has no doubt been severely damaged. Even if you could get a consolidation loan it would be debatable whether or not it would be the best option for you. You can use our “Debt Repayment Calculator” to see how much you would likely have to pay on a monthly basis if you were to obtain a consolidation loan.
Given that you can’t get a consolidation loan and therefore can’t dig yourself out of debt on your own there are only two other options to consider. Based on the information you provided it is difficult to say whether making a consumer proposal or filing personal bankruptcy would be your best option. The facts that will determine which of these options is right for you are; your income, your assets and your family situation.
For example – if you have high income, own assets and have a small family filing a consumer proposal is likely a good option for you. If however you have relatively low or inconsistent income, own no non-exempt assets and/or have a larger family filing personal bankruptcy may be a better option for you.
Given your situation I think it would be best to contact my office and arrange a free, no obligation initial consultation where I can review your situation and discuss these options with you in more detail.
