Personal Bankruptcy in Canada
Personal financial problems
If you are suffering from personal financial difficulties, such as overwhelming debt, you may be considering bankruptcy as a solution. You are not alone! Every year, about 100,000 individuals in Canada file for personal bankruptcy or file a consumer proposal.
Are your problems typical of the most common causes of personal bankruptcy in Canada. You may recognize these in your own case:
- Loss of income, from job loss or a personal business failure.
- Too much student loan debt to repay on your income.
- Debts from coping with an accident or serious illness, in the family or your own.
With savings rates at record lows, any unusual financial requirement can easily put many people into financial difficulty.
Click here to see if your money problems indicate that you are in serious financial danger .
Is personal bankruptcy the only solution?
No. There are a several bankruptcy alternatives in Canada that should be explored prior to filing for personal bankruptcy. Some of the possibilities available for most people are:
Each option in this list is more extreme than the one before, so they should be considered in order. A licensed bankruptcy trustee can help you determine which option is right for you.
If you eliminate all other options, bankruptcy is the final option to solve your financial problems.
Advantages and disadvantages of personal bankruptcy
Bankruptcy provides these advantages:
- Protects from collection action, legal action and wage garnishees
- Eliminates a person’s unsecured debts
- Is relatively quick
- Can be inexpensive relative to the other options
On the other
hand, bankruptcy has these disadvantages:
- Is very hard on your credit history
Although bankruptcy adversely affects a person’s credit rating, most people going into bankruptcy have such a bad credit rating that nothing will make it worse. In fact, after bankruptcy, a person is a better credit risk because he or she has no debt. Personal bankruptcy is a powerful vehicle for a debtor to get a fresh financial start.
When might personal bankruptcy be necessary for you?
If you are a resident of Canada who is unable to pay your bills when they are due, and you have tried everything possible to get back on your feet, it may be time to consider personal bankruptcy.
Anyone who owes more than $1,000 is eligible for personal bankruptcy in Canada. Ideal candidates are those who need a rapid financial fresh start.
Filing for bankruptcy is a difficult decision. It will eliminate most, if not all of your debts, but it will also hinder your ability to obtain credit in the future.
Before deciding to go bankrupt, you must meet with a licensed trustee to review your options. Then you, and only you, can make an informed decision.
Please contact us today to arrange for a no-charge initial consultation or for answers to your questions about personal bankruptcy and dealing with financial problems that might lead to bankruptcy. We’re here to help!Source: www.bankruptcy-canada.ca