What are the Benefits of Filing Bankruptcy in Canada?

When you are stuck in an overwhelming debt situation then there could be many benefits of bankruptcy for you.

Bankruptcy might sound scary but often the fear of bankruptcy is brought on by misconceptions and myths and once you go bankrupt a weight will be lifted off your shoulders.

You can benefit from the positive impact financially, emotionally and in legal protection of filing bankruptcy.

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The benefits of bankruptcy include:

Benefits of Filing Bankruptcy* You will be released from your debts that you owe, with certain exceptions such as alimony or debts arising from fraud that your trustee will explain to you;

You will regain control of your situation – Your financial situation will be back in your control and you will have a fresh financial start.

You can work towards saving and achieving your financial goals;

 All harassing calls from your creditors or aggressive collection actions from collection agencies will stop;

All other legal actions against you are stopped when you go bankrupt;

Wage garnishments will end;

You won’t lose all of your assets;

You will get out of debt and get your fresh financial start in a cost effective manner and bankruptcy is usually the quickest way for getting out of debt.

Benefits of Filing Bankruptcy InfographicBankruptcy is a legal proceeding that will provide you with immediate protection and gives you a chance for a fresh start when you receive your bankruptcy discharge.

Your bankruptcy will wipe out all of your eligible unsecured debts; your creditors cannot “opt out” of your bankruptcy and they must abide by the terms of your bankruptcy.

None of your unsecured creditors will be able to contact you or attempt to collect from you once you are bankrupt.

This is a major benefit over other debt relief programs that allow certain creditors to choose not to participate which often leads to the entire debt repayment plan collapsing.

When you go bankrupt an automatic stay of proceedings goes into place, which is a major benefit of declaring bankruptcy.

There are many debt relief options available in Canada, but for many debtors going bankrupt is the correct choice to clear credit cards, taxes owed, and other unsecured debts.

While a note of your bankruptcy will remain on your credit report for 6 years, you can still begin rebuilding your credit score with the bankruptcy on your report.

Contact a local bankruptcy trustee today at 1-877-879-4770 toll free or contact us online.