Some people believe that filing for bankruptcy is synonymous with the end of the world as they know it – a complete breakdown of their personal finances.
The reality is that bankruptcy is a lot less dramatic than that.
It may feel like a significant setback, but bankruptcy can actually improve your situation, solve your unsecured debt problems, and allow you to start on the journey toward financial wellness.
Let’s go through each of these advantages in greater detail.
#1. Bankruptcy can improve your situation.
The bankruptcy process in Canada is a legal one that offers benefits that other debt solutions do not, the most significant being protection from your creditors. You see, the moment you file for bankruptcy, an “automatic stay of proceedings” takes effect. This means your unsecured creditors are stopped from enforcing the collection of their debt against you. Bankruptcy puts an end to the collection calls, letters, garnishments, legal actions, and frozen bank accounts, giving you time to get your financial affairs in order.
#2. Bankruptcy can solve your unsecured debt problems.
Unlike other types of debt solutions, in a bankruptcy, you do not need your creditors’ approval to proceed, nor will your creditors be able to “opt out” of the bankruptcy. Once you file, your unsecured creditors are bound to have their debts addressed in your proceeding.
#3. Bankruptcy allows you to start on the journey toward financial wellness.
It typically takes 9 months to complete the bankruptcy process. Once you do, you will have eliminated all your unsecured debt. You will finally be able, to begin with, a clean slate and build the healthier financial future you deserve.
How do I get help with filing for bankruptcy?
Your first step is to reach out to a Licensed Insolvency Trustee (LIT). LITs are the only federally-regulated, licensed professionals authorized by the Canadian government to help you file for bankruptcy.
What’s more, LITs offer the full range of debt relief solutions. At your free initial consultation, we’ll review your financial circumstances and explain each debt relief option available to you. You’ll also get our seasoned advice on which one might be the best for you and your family. And remember, the sooner you get help, the more debt relief options you may have to choose from.
Can I get low-income bankruptcy help?
Bankruptcy fees are regulated by the government and are based on your income and ability to pay. Fees for your LITs services will never be up front. Instead, they are rolled into your monthly bankruptcy payments. You can discuss these fees with your LIT at your free initial consultation.
To file for bankruptcy or to find out what alternative debt relief options you may have available to you, reach out to us today. Every debtor’s financial situation is unique. We can help you figure out whether bankruptcy is the right solution in your specific case.
As a final note, I leave you with this thought. I’ve seen many of our clients experience an even better life than they were living before they filed for bankruptcy. You have the power to make a change today. By making responsible choices and changing the patterns that got you indebted in the first place, bankruptcy may end up being the beginning of a bright financial future.