Читать книгу Bennett on Consumer Bankruptcy - Frank Bennett - Страница 9

While the consumer debtor may qualify under the criteria above, he or she may wish to avoid bankruptcy if it is possible. Many debtors do not want to go bankrupt as they consider bankruptcy to be irresponsible and a failure financially.

They may also consider their reputation in the community and the stigma attached to bankruptcy, although that factor seems to be diminishing over the last 30 years.

Last, but not least, debtors want to protect their credit rating. Once in bankruptcy, it may take years to re-establish credit to what it was formerly.

There are alternatives to bankruptcy and the consumer should carefully consider them before going bankrupt:

• The consumer debtor may make a deal or enter into a proposal with his or her creditors.

• The consumer debtor may be able to obtain a debt consolidation loan from one bank so that he or she can pay all the other creditors on a minimum monthly payment

• The consumer debtor may obtain a consolidation order in Small Claims Court, or in some provinces an order directing payments to creditors.

• The consumer debtor’s income may increase to cover the carrying charges and pay some principal.

• The consumer debtor’s expenses may decrease.