If you’re reading this post, it’s likely because you have come to realize you have significant or growing debt that you’re unable to deal with on your own.
Acknowledging your current situation and seeking out education or assistance is the very best thing you can possibly do to improve your circumstances.
For most debtors, the main challenge lies in finding the right solution for their particular situation. For many, the best solution is Bankruptcy. It gives them the fastest way to recover financially and get back to building their future. Follow these steps on how to file for bankruptcy in Manitoba.
Bankruptcy is a process by which honest, hard-working Canadian debtors like yourself may obtain relief from the financial pressures of overwhelming debt. The actual filing of Bankruptcy in Manitoba is a relatively uncomplicated process.
We’ll discuss the steps on how to file for Bankruptcy in Manitoba more thoroughly below. But before we get ahead of ourselves, we want to acknowledge that…
There are significant advantages to filing for Bankruptcy in Manitoba.
Bankruptcy can improve your financial situation almost immediately upon filing.
That’s because in Canada, Bankruptcy is a legal process that protects you from your creditors.
The moment you file for Bankruptcy, an automatic Stay of Proceedings takes place. This means that your creditors are no longer able to contact you directly to recover the debts you owe. No more collection calls, wage garnishments, frozen bank accounts, or lawsuits.
Another advantage is that once you are discharged from your Bankruptcy, typically within 9 months if it’s your first Bankruptcy, your unsecured debt will be extinguished — your credit card balances, unsecured personal loans, unpaid medical bills, and payday loans.
What this really means is that you’ll be able to start on the journey to rebuilding your credit within a relatively short period of time.
There are also other things to consider when filing for Bankruptcy.
- Debts like child support, alimony and fines and penalties of the court will not be discharged in the Bankruptcy.
- A Bankruptcy will show up on your credit report for up to seven years, which might make it more difficult for you to obtain a loan. However, if you have continued payments on a mortgage or car loan during the bankruptcy, you will have already begun the process of rebuilding your credit. There are also prepaid credit cards that can help an individual rebuild their credit record.
Remember, that if you’re at the point of having to consider bankruptcy as a viable option to deal with your debt, your credit rating is likely already quite poor. Even missed payments have a detrimental effect on credit rating. With Bankruptcy, you’ll be able to finally eliminate your unsecured debts.
Don’t let the stigma or fear of the unknown stop you from getting the financial assistance you need.
You deserve to get a fresh start so that you can begin the process of rebuilding your credit and your life.
So how exactly does one go about filing for Bankruptcy in Manitoba?
Here are three easy steps for you to follow to get the bankruptcy advice you seek.
#1. Acknowledge you have a debt problem.
As we mentioned above, the fact that you’re even reading this article means you’ve realized that you need professional assistance to handle your debt. You can no longer go at it on your own.
But let’s get more specific.
You need professional assistance with debt relief if you find yourself missing mortgage or loan payments, reaching or exceeding your credit card limits, taking out payday loans or cash advances to make ends meet, receiving collection calls, or having your wages garnished.
Only by dealing with your finances head-on will you be able to finally achieve relief from money problems that have been plaguing you for far too long.
#2. Contact a Licensed Insolvency Trustee.
If you are considering filing for Bankruptcy, you will need the assistance of a Licensed Insolvency Trustee (LIT) to do so.
LITs are the only professionals authorized to help Canadian debtors with submitting Consumer Proposals and filing Bankruptcies.
But that’s not all. LITs can offer you a full range of debt relief options, including budgeting, money management, credit counseling, and Consumer Proposals.
LITs are arguably the best financial advisors in the country.
Seasoned LITs have decades of experience helping Canadians with their debt problems.
And not only are they are licensed and regulated by the Canadian government, they are also required to adhere to strict rules and regulations when it comes to the provision of debt relief services.
You’re going to want to choose an LIT that is close in proximity to you, or at least easily accessible by public transportation. You’ll need to meet them in-person at various points during the Bankruptcy process. That is, unless you live in a northern or remote community. In those situations, the entire process can be carried out through mail and telephone contact without in person meetings.
#3. Meet with your Licensed Insolvency Trustee.
Your first consultation is free.
It’s at this free initial consultation that you will be able to provide the LIT with a comprehensive financial overview of your situation and ask any questions you may have.
Based on this information, your LIT will discuss all the debt relief options available to you, the respective pros and cons of each, and even provide you with their expert opinion as to which may be the best solution for you and your family.
You will never be pressured to take any action you don’t wish to. The ultimate decision is yours.
Bear in mind…
Bankruptcy may not be your only option.
The sooner you get professional help, the more options there may be available to you.
Want to learn more about declaring personal Bankruptcy in Manitoba?