How to effectively erase your debts?

debt cancellation

There are times in life when you just can't cope. Daily life is getting too much to handle, debts are piling up and morale is low.

Indeed, financial problems are often the cause of depression and even divorce. So before you get there, it's best to take matters into your own hands and react as soon as possible.

But then, what to do in the event of debts that are impossible to repay? You just need to file an over-indebtedness file. But will this solve all your problems? It may be that it does. In any case, we must try everything to write off debts !

Don't stay with your money problems

Most people who have money problems and difficulty paying off their debts keep everything to themselves. They don't tell anyone about it and, little by little, sink into a vicious cycle that very often leads them to depression or worse.

Filing an over-indebtedness file is not a shame, on the contrary, it shows that you want to get out of it. By filing an over-indebtedness file, you show that you want to leave this infernal spiral to live better. 

Many people don't because they are afraid of being judged by those around them or because they think it will be of no use to them because no one can do anything for them. Yet the debt overhang is extremely beneficial for people in financial crisis.

What is personal recovery?

By submitting an over-indebtedness file, the over-indebtedness commission may choose two solutions depending on the degree of your debts and your inability to meet them. The first solution is the conventional recovery plan. This solution allows you to reduce your debts by creating lighter deadlines, by staggering your debts ...

On the other hand, when the situation is really critical and you are truly unable to repay your debts, the debt distress committee may choose to set up a personal recovery procedure (PRP). This procedure is, quite simply, to erase your debts in order to start from scratch. Be careful, however, if personal recovery also allows you to erase your tax debts, you should know that if you have assets, your property can be seized. In addition, you will be registered with the FICP for a period of 5 years. Therefore, you will be unable to take out credit during this period.

That said, personal recovery offers a significant second chance. It helps you get your head out of the water by wiping out all your debts. Obviously, for personal recovery to be offered when filing your over-indebtedness file, you must prove your good faith and show that you found yourself in this situation, against your will, which is logical.

So if you can no longer cope with your countless debts, it might be time to file an over-indebtedness file. There is nothing shameful in this approach, quite the contrary. Plus, if your situation is dire, you may be able to write off all of your debts!

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