Declaring Bankruptcy in Red Deer – What Happens if You Can’t Afford to File?
For some Red Deer residents in deep financial trouble, the cost of the debt solution they adopt is their first concern. Enrolling in a credit counseling solution or one of those debt settlement plans who hear advertised so often is not possible if you do not have some form of income to make reduced monthly payments. Even though declaring bankruptcy in Red Deer is by far the most cost effective debt solution available, what happens if you cannot afford to file?
If you have been searching the Internet for help and have come across an average cost estimate for a personal bankruptcy filing of between $1500 and $2000, do not give up just because you cannot afford that.
First, recognize that is an average. Some filers pay more and some pay less. The difference depends on how much you own and how much you make.
Second, no matter now bad your situation is, declaring bankruptcy in Red Deer is still open to you. Although bankruptcy trustees are not charitable institutions, we often work at lower cost arrangements for filers in desperate need.
What we typically do is ask for the direct costs at the time of the filing, including a $75 filing fee and $180 for the cost of the two required credit counseling sessions you will attend while in bankruptcy. Then, depending on your circumstances, we can work out a minimal monthly payment plan over the course of the nine months you will be in bankruptcy.
While most trustees will work with those who cannot afford to file, if you are one of the few who actually get turned away by two trustees, the Office of the Superintendent of Bankruptcy (OSB) has a program to help. The Bankruptcy Assistance Program is available by simply calling the OSB and they will find you a trustee. If you check the OSB website for the contact number, you will learn this program is rarely used. The OSB confirms the fact that the vast majority of trustees across Canada do not turn away the poor who need bankruptcy protection.
Finally, you do have another option if you cannot afford to file and that is to do nothing. Creditors can legally force collections, but only if you have financial resources to pay. The most common legal collection action is a wage garnishment. If you are on public assistance or have no income or subsistence income, the courts will not allow a garnishment. If you have no assets of high value, an attachment lawsuit is out of the question.
However, creditors often sell the rights to debts owed them to professional debt collection companies. These people can continue to harass you in an attempt to collect what you owe. Declaring bankruptcy in Red Deer is a much better option. Trustees offer free initial consultations, so if you are in trouble, come in and see us even if you feel you cannot afford to file.
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