Is Filing for Bankruptcy A Good Idea?
Money troubles like debt can be a significant burden in your life.
The digital age has made it much easier for banks and other financial institutions to follow up on the money you owe, and many people feel extremely pressure when they are receiving phone calls, letters, and emails all requesting that they pay money which they simply don’t have.
Filing for bankruptcy is often regarded as the best way to solve the problem of crushing debt when you’re in a position like this.
Bankruptcy Canada has been working in the field of debt relief for more than 20 years, and we have the experience to work on even the most complicated of cases.
But is filing for bankruptcy a good idea for you?
Let’s find out.
The Disadvantages of Filing for Bankruptcy
Filing for bankruptcy is an extreme measure which should never be taken lightly.
It can certainly come with some disadvantages, and it’s worth exploring these before we delve into the benefits of this sort of action.
- Credit Impact: Filing for bankruptcy will show up on your credit history for 6 years, forcing you to give up your credit cards, and making it very hard to get credit.
- Losing Assets: When you file for bankruptcy, you will need to pay off as much of your debt as possible with your non-essential assets.
- Employment Opportunities: It will be hard to work in fields which involve money if you’ve had to file for bankruptcy.
- Doesn’t Remove All Debt: Student loans, alimony payments, and child support are just a few examples of debt which won’t be impacted by filing for bankruptcy.
The Advantages of Filing for Bankruptcy
Alongside the negative side, there are also some advantages which come with filing for bankruptcy.
It’s worth considering these benefits carefully, as this process will have a dramatic impact on your finances in the future.
- Stay of Proceedings: Filing for bankruptcy will force creditors to stop sending harassing correspondence, while also freezing any automatic payments you have to make. This can make your situation a lot less stressful.
- Low-Cost Option: Filing for bankruptcy can often cost less than your other options, especially if you’re having to pay late payment fines or high levels of interest. Having substantial debt can cost a small fortune without this sort of support.
- Stress-Free Process: This process is a lot faster than most people expect, taking only 9 months in some cases. During this time, the support of a company like Bankruptcy Canada will take even more of the pressure off of your shoulders.
Is Filing for Bankruptcy A Good Idea?
So, it’s time to answer the vital question; is filing for bankruptcy a good idea?
Unfortunately, like most things in life, the answer to this question isn’t that simple.
It will very much depend on your current situation, and this means that you have to assess your own finances to make sure that this is the right decision.
There are a number of different circumstances which can all for this.
Receiving calls and letters from the people you owe money to can be extremely stressful.
When you haven’t paid for a long time, they will often be very forceful, even threatening lawsuits against you.
Under the Bankruptcy & Insolvency Act, you have an automatic stay from this sort of harassment, making bankruptcy a viable option in this case.
Along with this, having your wage garnished, facing existing lawsuits for unpaid debts, or simply having more debt that you could possibly repay can all be good reasons to look into your bankruptcy options.
Canada has strict laws in place to protect people in your position, and it can be worth taking advantage of this when you have few other options.
Using Bankruptcy Canada for Your Debt Relief
If you’re considering the idea of filing for bankruptcy, we encourage you to get in touch with our dedicated team.
We pride ourselves on providing honest and knowledgeable advice, and aren’t afraid to tell our clients when bankruptcy isn’t the right option for them.
This has helped us to build a strong reputation over the last 21 years.
You can get in touch with our team by calling at 1-877-879-4770 or sending an email to us.
We offer confidential and obligation free advice, ensuring that you have the best possible experience through the bankruptcy process.