If you are considering personal bankruptcy you are no doubt feeling helpless as a result of a loss or significant reduction of income. The decision to declare personal bankruptcy is a serious one and should be made only after consulting with a licensed trustee. It’s not an easy fix for your financial problems and should be considered a last resort. Bankruptcy is hard on your credit rating, all debts may not be erased, you may have to surrender most of your possessions to your trustee, and you may have difficulty obtaining credit in the future for some time. There are also emotional and psychological effects of bankruptcy to consider. Although your financial problems may seem insurmountable, there are bankruptcy alternatives that may be better options for you. These include:
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When is it time to consult a licensed trustee? Consult a licensed trustee as soon as possible if:
- You have failed to make one or more payments on a mortgage or loan.
- Your credit cards are constantly at their limit.
- You are paying bills by taking credit card cash advances.
- Your creditors have passed your account to collection agencies who are now calling you.
- You have received notice of legal action against you to collect money you owe.
Why choose 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
Can anyone declare personal bankruptcy? Anyone who is insolvent and owes more than $1,000 is eligible for personal bankruptcy in Canada.
To learn more about personal bankruptcy and bankruptcy alternatives please visit our website. Contact Ira Smith Trustee & Receiver to discuss the right option for you. There is no reason to struggle beneath a mountain of debt when you can gain back your former quality of life Starting Over, Starting Now.
