Bankruptcy is a scary word for many people that conjures up images of being destitute and never owning anything again. And while declaring bankruptcy is never anyone's goal when it comes to finances, it really isn't the end of your financial future forever. The concept of bankruptcy is pretty straightforward and will always be explained thoroughly to you when you visit a bankruptcy office. Obviously, money problems are at the root of every bankruptcy case. And usually, the money problems are quite severe when bankruptcy is even considered.
To declare bankruptcy, you must surrender all that you own to a trustee in bankruptcy and in return, your debts are eliminated. With bankruptcy, you get the opportunity for a fresh start to finally get out from under your money problems. To be able to go into personal bankruptcy in Canada, you have to live in Canada or do business in Canada, and be insolvent. This means you owe at least $1,000 and are not able to pay your debts when they're due. The fees you'll incur at a bankruptcy office are generally quite reasonable, so as not to add to the money problems you already have.
Even though each case is different and only you can decide if bankruptcy is the best option, you can generally gauge whether to look into bankruptcy by following a few signs. If you are looking at facing foreclosure or repossession on your home, if creditors are taking your wages before you even see them, or if the state of your debt is such that your health is being affected, bankruptcy might be a good idea.
If your situation sounds similar to this, still take some time to think about what you want to do. Although your debt will be erased, bankruptcy remains on your credit report for a number of years and can follow you around even after you have turned things around. In certain cases, you could be discharged from bankruptcy in nine months, but that isn't a guarantee. Enlist the help of a bankruptcy trustee and go over all your options before you start the proceedings. If your money problems can be erased or managed in other ways, consider them before you continue with a bankruptcy.
If you still want to file for bankruptcy after considering your options and the reality of the situation, visit a bankruptcy office and get started. Bankruptcy takes care of most of your unsecured debts like unsecured personal loans or credit lines, credit cards, insurance premiums, unpaid utilities, payday loans or medical bills. For some people, these types of debts can add up to a considerable amount of money. Debts such as child support or spousal support, fines and student loans are not taken away. Secured debts like a car loan or mortgage, which are assets you can use for collateral are also not removed in a bankruptcy case.
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Offering a FREE no-obligation consultation, Bankruptcy Trustee Toronto experts have been helping Canadians for over 30 years.
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