Most people have some form of debt. Circumstances in life can make paying off these debts more difficult. And with the prevalence of the use of credit cards, it’s not much easier to accrue debts.

But what if you can no longer pay for your debts? If it’s a secured debt, your creditor will repossess the property used as collateral. For unsecured debts, your creditors might keep on hounding you and might also threaten to seize your assets and properties.

There are, however, some options that can help you when you can no longer pay for your debts such as the following:

1. A consumer proposal in Kelowna

A Consumer proposal in Kelowna is an agreement between the creditor and the borrower. You agree to a certain amount, usually 30-40% of the current debt. You can pay for this debt in a 5-year period. Since it is smaller, it is more manageable and it will have a lesser impact on your credit score.

2. Bankruptcy

The last resort is filing for bankruptcy. When you file for bankruptcy, your creditors will stop hounding you. This can also protect your assets such as the equity that you built for your home.

In order to do these options, you need the help of a Licensed Insolvency Trustee such as Mike Wright & Associates Inc. who can file for them on your behalf and negotiate the terms with the creditors. Find out what can be included in the consumer proposal or the bankruptcy so you can decide which option is the best one for you.

To know more about Bankruptcy Kelowna please visit our website: debtfreebc.ca