Many debtors who find repayment difficult, or are continually defaulting on payments, start considering bankruptcy as a solution to overcome the situation.
If you are one such debtor, then it is first important to know if bankruptcy is for you.
Our Licensed Insolvency Trustee at Peace River, AB, can help you with an answer.
MNP Limited Peace River, AB Licensed Insolvency Trustee
Many debtors do not realize that bankruptcy is not a solution that anyone can claim to get out of a difficult debt situation.
When you contact Licensed Insolvency Trustee at our Peace River, AB, firm, you will get to know that you need to satisfy certain conditions first to be considered eligible for bankruptcy in Canada.
The trustee, who is licensed by the Superintendent’s Office for Bankruptcy or the OSB, will ask you a few questions to find out your eligibility for bankruptcy.
If you are a Canadian resident, or are engaged in a business in the country, or have a property here, and owe creditors more than $1, 000, and are unable to pay your entire debt, then you qualify for bankruptcy.
Peace River, Alta. Debt Solutions
The fact that you are eligible does not mean that you can file for bankruptcy.
There are several other factors that need to be considered to know if bankruptcy is the right solution for you.
Filing for a bankruptcy without a proper review of your debt situation can land you in more trouble than before.
Get an appointment with our Peace River, AB, Licensed Insolvency Trustee, first, to discuss your situation.
Provide all details of your debt situation without hiding any information. Only then, will our bankruptcy trustee be able to provide a valid solution for you.
If you are considering bankruptcy to pay off a student loan, then you would be surprised to know that student loans cannot be cleared by bankruptcy.
Even if you declare bankruptcy, you will still have to pay a majority of the loan.
So, you will not have any benefit by declaring bankruptcy.
Your debt situation will only turn worse in this case because you will have bankruptcy on your credit report.
Bankruptcy is also not possible if you can pay off your debts using your existing assets.
The LIT (Licensed Insolvency Trustee) will study your finances, and assess your repayment ability using liquid cash and assets.
In such a case, the LIT will not recommend a bankruptcy as your credit score and financial future could be damaged.
A bankruptcy stays on record for 6 to 7 years, which affects your credit rating.
Why ruin your financial future when you can repay the debt in the first place?
Bankruptcy cannot be an option if other options such as debt consolidation, Consumer Proposal, and debt management, can work for you.
Bankruptcy has benefits only if your debt situation cannot be salvaged through other options. Assessment by a LIT is a crucial step that you cannot ignore or bypass.
Schedule an appointment with our firm’s Licensed Insolvency Trustee at Peace River, AB, today, to know whether you can benefit from bankruptcy.