Can I be Forced to Go Bankrupt in Canada?
The idea of filing for bankruptcy is a very scary one for a lot of people.
While this process can be the mechanism that enables you to achieve financial freedom, there are many misconceptions surrounding this sort of process that leave people feeling negative about it.
One of the most common of these ideas is that your lenders can force you to go bankrupt if you don’t pay them quickly enough.
Let’s take a look at how this usually pans out in the real world.
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Can Your Lenders Force You Into Bankruptcy?
Fortunately, lenders simply don’t have the power to force you to file for bankruptcy.
They can petition you to take this action, though it will still be your choice when it comes to making the big decision.
They will send letters, make threats, and could even sue you, but they can’t make you file for bankruptcy without your consent.
Why Wouldn’t A Lender Force You Into Bankruptcy?
Even if a lender did have the power to make you go down this route, it usually wouldn’t be worth it for them.
They know that taking you to court will help to push you towards filing, giving them a faster and cheaper route to go down when they’re approaching your debt.
Being able to take action like this makes petitioning for bankruptcy almost worthless.
Lenders will usually choose their actions based on what is worth it for them.
If it will cost a small fortune to push you to file for bankruptcy, it makes sense that they would pay a small amount for court fees to give you little choice but to file for yourself.
Of course, though, they will also weigh this up with the amount of money you owe, and those with very large loans could easily find themselves in court when they don’t pay.
Solving The Problem With Bankruptcy Canada
Thinking about the consequences of poor money management would be pointless if you don’t take action.
To help you with this, let’s take a look at a case study to show how Bankruptcy Canada can help you out of a position like this.
You have a home with a small mortgage, several credit cards that you’re struggling to pay off, and a large overdraft on your bank account that hasn’t improved for several years.
At this point, you’re likely to be getting a lot of phone calls and letters threatening you with legal action, especially if you haven’t made payments towards your credit cards.
Looking for a second mortgage to take over from the first, while also swallowing up your other debts, could be a great way to solve this problem.
If you can’t get a loan, though, you may need to consider the idea of submitting a consumer proposal or filing for bankruptcy.
Bankruptcy Canada can provide support in both of these cases, giving you everything you need to improve your finances no matter the state they’re in.
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What is Bankruptcy?
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How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?