What services are provided by a Bankruptcy Trustee in Edmonton is a common question that Rhonda Fox-Miles gets asked.

It is an irrefutable fact— debt can be debilitating. When you are always worried about how you will pay your bills and make ends meet, many other aspects of your life begin to suffer as a result. And the worst part? It often feels like there is no end in sight.

In fact, in a recent study, 30 percent of Canadians said they were “extremely stressed” about finances to the point of losing sleep. In another study, 33 percent said financial stress had negatively impacted their relationships with family and loved ones.

But here is the good news— there are bankruptcy trustees in Edmonton who can help you navigate your next steps.  Despite how your current financial circumstances are making you feel, it is possible to find relief and recover economic stability.

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Four Ways a Bankruptcy Trustee in Edmonton Can Provide You with Debt Relief

Consumer Proposals

Consumer proposals are one of the most popular and successful alternatives to bankruptcy. When you reach a point where you cannot repay your debt according to your creditor’s timeline, it is time to put a Plan B into effect. Consumer proposals are a great option to consider, as they allow you to avoid the long-term damage to your credit that comes with filing for bankruptcy. On the downside, however, consumer proposals do not apply to secured credits (like mortgages), and they do still have an impact on your credit rating (although not as severe).

Debt Consolidation

Consumer proposals are one form of debt consolidation, but you can also take out a debt consolidation loan. Credit Councillors use these loans to reduce the number of interest fees an individual must pay and make settlement simpler by combining multiple debts into a single monthly payment.

Your bankruptcy trustee in Edmonton may suggest a consolidation loan for you if they believe you have the ability to make the monthly payments. But remember— if you fail to make your monthly payments or if you continue to accumulate more debt, you may have to pay even higher interest rates later.

Credit Counselling

An Edmonton bankruptcy trustee may advise you to try credit counselling before committing to more

drastic measures, like claiming insolvency. Credit counselling allows individuals who fall behind on their financial obligations to understand their situation and put a personalized plan in place for debt repayment.

However, it is essential to note that only 25 percent of people who enroll in credit counselling programs resolve their financial problems without submitting a consumer proposal or declare bankruptcy.

If you owe a large sum of money or are several months behind on bills or payments, credit counselling may not be a realistic debt solution for you. It is best to speak with a trustee to assess your unique situation.

Credit Consolidation

Credit consolidation is similar to debt consolidation; however, you are merely combining your existing credit card debts to a new, single card with more favourable terms instead of taking out a loan. Credit Consolidation allows you to avoid paying several different interest charges and focus on making a single monthly payment.

Many people choose credit card consolidation because the application process usually takes less time than taking out a loan. But they also come with some disadvantages, like variable interest rates, which can change over time and result in higher fees down the line.

What Happens If These Services Do Not Work for Me?

If you cannot resolve your financial problems using the debt solutions above, you will likely need to file for bankruptcy. But do not worry, one of the significant benefits of working with a highly knowledgeable bank trustee is never having to make these decisions alone.

Much of the stress associated with financial hardship comes from not knowing what to do. Each day, your situation becomes direr, yet you are not getting closer to finding relief.

When you hire an Edmonton bankruptcy trustee, much of the pressure you feel is lifted from your shoulders because you know a professional by your side has the skill and experience required to identify the best solution for you.

Remember, there are several different avenues to explore before filing for bankruptcy. Do not skip to the last resort before it is necessary!  Instead, find a bankruptcy trustee you feel comfortable with and begin putting a personalized plan in place.

Our insolvency trustees have a proven track record of excellence that spans more than 20 years. If you are ready for a fresh financial start, we are here to help.