Halifax Debt Consolidation – Make a wise choice!
If you are not interested in filing for bankruptcy then you need to go for a Halifax debt consolidation. The good thing concerning Halifax debt consolidation is that it offers you a chance to repay all your debts at your own pace. To become debt free, you will get plenty of choices. Before selecting any Halifax debt consolidation program, it is better that you check the track record of program first.
A recent study came to the conclusion that Halifax debt consolidation is a much better option in comparison to a debt consolidation loan. In the debt consolidation loan, you can easily lose your collateral if you are not able to repay the loan amount on time. By hiring debt Consolidation Company in Halifax, you will get a direct access to financial tools and informational resources that are quite important in the debt consolidation.
The first step in going for a Halifax debt consolidation is to evaluate the existing debts. If you have the funds, consider to pay it right away to lessen the burden. Debt consolidation tips are needed because the debts you have incurred are of high interest rates. It helps you to merge all your existing debts into a single manageable debt with low interest rate and convenient monthly payments.
You can also seek the lenders help to get yourself out of the mess of multiple debts. There are many credit counseling agencies that are available in Halifax. You are only required to fill out an application form providing the details. The agencies will then negotiate with your creditors on your behalf. By implementing this step, the burden of loan payments will be made easier for you.
Declaring bankruptcy in Nova Scotia
A person burdened with impossible debts and frustrated with numerous phone calls, posts and mails from collection agencies may decide for the bankruptcy option. There are a number of advantages associated in declaring bankruptcy in Nova Scotia. The bankrupt person doesn’t have to deal with the numerous creditors and their collection agents. It is against the law for a collection agency to order debt payback from a bankrupt person. The debtor has to pay a much less amount back to the creditors if he or she chooses bankruptcy over an IVA option. Once the debtor is released from the Bankruptcy status; most of the debts are written off and he or she can start the life afresh.
Though declaring bankruptcy in Nova Scotia seems a lucrative option, there are downsides to it as well. A popular misconception about bankruptcy is that it cancels out all the debts. This isn’t the case. A bankrupt person has to repay the student loan, alimony, lawsuits, secured credits and child support payments. In case of a bankruptcy, the applicant loses all his or her non-essential assets. This includes the applicant’s home and automobile if costing above a certain amount of money decided by the court. A bankrupt person is legally not allowed to run any business. Though a person is released from bankruptcy status; the bankruptcy entry remains on the credit file for six years. A lender always accesses the credit file of a person before granting a loan and bankruptcy creates a negative impact on them. Getting a loan or credit card becomes next to impossible for a bankrupt person. A good debts advice helps to decide whether declaring bankruptcy in Nova Scotia is absolutely required for the applicant or not. If declaring bankruptcy is best suited for the applicant, he or she can always have bankruptcy help from a competent consultant.