Bankruptcy - Personal Services
Facing serious financial difficulties is devastating, especially if you believe that personal bankruptcy is your only option. In fact many people mistakenly believe that dire financial problems automatically mean personal bankruptcy. If you are having problems meeting your financial obligations or have stopped meeting those financial obligations as they come due you are actually insolvent, not bankrupt. Before considering declaring bankruptcy, there are other bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals.
To learn about all of the personal insolvency services we offer, please review our summary of Personal Services.
Advantages of personal bankruptcy:
- It is relatively quick
- It can be less expensive than other options
- It eliminates your unsecured debts
- You will have some protection from creditors, legal action and wage garnisheeing
- After your discharge your credit risk can start to improve
Disadvantages of personal bankruptcy:
- Bankruptcy is very hard on your credit history
- Not all debts are erased; Bankruptcy only erases unsecured debts which include credit card debt, personal loans and overdrafts
- Secured loans which include mortgages and car loans are not covered in bankruptcy and as a result you could lose your home and/or have your car repossessed
- You will still be responsible for alimony and/or child support payments
- You will be responsible for student loans, if it is less than seven years since you ceased to be a full or part-time student
- You may have to surrender most of your possessions to your trustee
- You are required to keep detailed records of your income and expenses while you remain bankrupt
- You may have difficulty obtaining credit in the future
Who is eligible to declare personal bankruptcy in Canada?
Anyone who is insolvent and owes more than $1,000 is eligible for personal bankruptcy in Canada.
Debt is a four letter word. Now is the time to seek the advice of a professional. There is no time to waste. Contact Ira Smith Trustee & Receiver Inc. today for advice and a plan to tackle your financial difficulties so that you can be Starting Over, Starting now