Avoiding Bankruptcy in British Columbia
No one wants to think about what happens when they run out of money to pay their debts. However, for many people, bankruptcy is an imminent concern. If you’re worried you’re headed down the path toward bankruptcy, look to the professionals at J Bottom & Associates. We’re here to help British Columbia residents manage their debt and avoid bankruptcy. We understand that this is a challenging time for you and your family, so we’re dedicated to reliable, compassionate services. Don’t resign yourself to financial ruin—get in touch with the experts at J Bottom & Associates.
Create a Comprehensive Record
Before you can create an action plan, you need a good understanding of your financial situation. To better understand your finances and expenses, write down a list of all your outstanding debts. This can be a physical pen-and-paper list, or you could create a spreadsheet listing everything you owe. Be sure to include interest rates, as these greatly affect the amount you’re expected to pay. Once you can see your situation in black and white, you can better manage your debt.
Decide Which Debts You Can Cover Today
Run through the list you just made. Which debts can you pay off today or as soon as possible? Maybe you have some outstanding credit card debt that you can wipe out after the next payday. If you don’t know which debts to pay off first, the team at J Bottom & Associates can help. We often recommend paying down the debts with the highest interest rates as soon as you can. This way, you won’t be on the hook for even more money down the road.
Find Assets that Can Help You Pay off Debts
No one wants to sell their belongings to pay off debt, but getting some extra cash now will be worth it in the long term. Consider what you have lying around in the house. Are any of these items valuable? What are you willing to part with that’s worth money? Make a second list of valuable items that you can exchange to pay down your debts. Some examples you may want to consider include:
- Electronic devices or equipment
Other Methods of Managing Debt
If you’ve completed all of the above steps, you’ve probably paid down your debt a little bit. But if you have lots of different creditors, you may still have the bulk of it to go. In that case, start exploring your options for loans and lines of credit. We often suggest taking the following measure to avoid bankruptcy:
- Debt Consolidation: Opting for a debt consolidation loan is a tried-and-true method of wiping out debts. Debt consolidation loans often come with low interest rates and seldom incur late payment fees.
- Debt Settlement: Debt settlement is an attractive option if you don’t mind getting on the phone with your creditors. Many people choose to contact the people they owe money to and explain their dire circumstances. Many creditors are understanding and will be willing to create a more flexible payment plan or forgive some of the debt. You may end up paying less each month. It rarely hurts to ask!
- Home Equity Line of Credit: Home equity line of credit, or HELOC, is a secured loan that is similar to a credit card loan. However, HELOC is typically offered with better terms. HELOC gives you the chance to always have access to a certain amount of money. Hopefully, opting for HELOC means you can pay down your high-interest debts.
Reach Out to Us for Assistance
Sometimes, it just isn’t possible to avoid debt. But many people can still avoid bankruptcy. The team at J Bottom & Associates is dedicated to helping British Columbia residents regain their financial stability. We know that the costs of daily living are higher than ever, and many just don’t have the means to pay down astronomical debts and interest rates. Our team will help you find strategies for reducing your debt and avoiding bankruptcy in the long term. You don’t need to struggle alone—our experts are here to help. Contact us today to consult with a member of our team.