BONNIE ASKED: I am getting out of an abusive relationship. I don’t have money to pay any of the collection notices I have gotten. What should I do? 

ANSWER: I have no doubt that getting out of an abusive relationship is difficult enough without having to struggle with personal debt issues. Receiving collection notices and knowing that you don’t have the money to pay them can cause a lot of stress. The good news is that you do have options to deal with your creditors and to get a fresh start.

Once you have determined that you can’t “dig yourself out of debt on your own” then you need to take action to deal with your personal debt issues, stop the collection notices and prevent your creditors from garnisheeing your wages.

There are basically two options that I can offer to help you get out of debt and get a fresh start.

Making a Consumer Proposal
By making a consumer proposal you are able to stop interest, prevent creditor action, and compromise the total amount of debt you owe. Basically a consumer proposal allows you to pay-back an amount to creditors that you can afford.

File Personal Bankruptcy
If you can’t afford to do make a consumer proposal, then filing personal bankruptcy might be your best option. Filing personal bankruptcy will prevent your creditors from taking any further legal or collection action against you and will definitely be less expensive than filing a consumer proposal.

Either option, making a consumer proposal or filing personal bankruptcy would be a way of dealing with your personal debt issues and getting a fresh start.

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