Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

May 2006 – Seeking 2nd Opinion Before Filing Bankruptcy Is Prudent

By:Adam Aspilla
May 25, 2006

Bankruptcy is not always the best solution of financial problems. Sometime it does more harm than good.

When you are experiencing financial difficulties you may try the following ways of solving your financial problem. If you have two creditors or more, first, try to secure a consolidation loan from a bank or trust a company where interest rate is the lowest compared with secondary lenders. If your application was turned down, you may go to a secondary lender to consolidate your debts. You may be able to get a consolidation loan from sources other than bank or trust company, but be conscious of high interest rate. If you consolidate with high interest rate your financial situation may not improve. Before signing on the dotted line, make a calculation to be sure it would solve your problem.

If by consolidating at high rate of interest would not solve your financial problem, you have to consider credit counseling, consumer proposal or bankruptcy as a last resort. The question that you would ask is “what is best for me, credit counseling, consumer proposal or bankruptcy?” It is not easy to answer the said question without looking closely your income, assets, and liabilities. An objective analysis by a qualified person on those three items could give you a reliable answer. Do not file credit counseling, consumer proposal or bankruptcy if it is not best for your circumstance.

Weigh your options before deciding what action you have to take to overcome your financial difficulty especially if it is bankruptcy. If you prematurely file for bankruptcy, you may lose your precious assets when you do not have to.

An example: a couple who filed for bankruptcy prematurely thinking that it was their only solution of their financial problem, as a result, they lost their house, and their children educational funds which could have been prevented should they explore other alternative solutions.

Choosing the appropriate solution of your financial problem is not always easy. If you are not sure of what you are going to do, it is prudent for you to seek a second opinion to avoid losing unnecessarily your precious assets when you could rightfully keep them. 

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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