Bankruptcy in Canada: What you should know
Advantages of filing for personal bankruptcy:
1. Protects from collection agencies harassment
2. Eliminates personal debt
3. Quick financial fresh start
4. Relatively inexpensive
5. Most Provinces provide protection for your clothes, furniture, car, etc. from your creditors
6. All legal actions, wage garnishees, etc. are stopped. No new legal proceedings are allowed to start without the express prior consent of the court.
Disadvantages of filing for personal bankruptcy:
1. Credit history resets to R9
2. Some assets/possessions must be surrendered to your trustee for division among your creditors
3. You will need to rebuild credit. If your credit is bad, you will have to do this regardless whether or not you file an assignment in bankruptcy.
4. Possible future difficulties acquiring loans. Even if you do not get the loan, you will pay higher interest rate due to a higher risk factor.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.