SHOULD I FILE FOR BANKRUPTCY?

Photo by Melinda Gimpel

Originally Posted On: https://foxmiles.ca/blog/should-i-file-for-bankruptcy/

Are you having trouble making payments? Credit cards, car loans, mortgage payments, CRA tax debt, business debt are just some of the types of debt bankruptcy we can help you navigate.

Are Creditors harassing you? Bankruptcy helps to deal with creditors by placing a stay of proceedings on collections, which stops collections and provides immediate relief to your monthly debt obligations.

Are you feeling stressed? When in financial difficulty, the amount of stress that builds up over time can seem inescapable and tends to affect all aspects of life, from business to personal relationships. Bankruptcy helps alleviate the burden of debt while providing a structured financial solution that is possible for your fresh start.

Many people find their stress levels decrease significantly when they decide to go bankrupt. They no longer have the burden of dealing with the daily stress of their debts. The licenced insolvency trustee under the authority of the Bankruptcy and Insolvency Act of Canada takes charge.

With the economic uncertainty people are experiencing due to COVID-19, there will be many people who go bankrupt. Trust a professional to help get you back on your feet.

WHAT IS BANKRUPTCY?

Bankruptcy is an insolvency process under federal legislation with contributing provincial laws administered by the court of queens to get you a fresh start with your finances with help learning to identify the risk factors that lead to bankruptcy and how to prevent a future bankruptcy.

WHAT DO YOU NEED TO QUALIFY FOR A BANKRUPTCY DECLARATION?

Owe more than $1000
You are insolvent
Live or do business in Canada
Have more debts than assets

BENEFITS OF BANKRUPTCY

Bankruptcy provides an automatic stay. All creditors get notified, and all actions against you are halted when you file for bankruptcy. Lawsuits, wage garnishments, and collection calls all stop.
You have protection. The Bankruptcy & Insolvency act protects you by the terms and conditions of the act. All parties are on an equal playing field.
Bankruptcy clears unsecured debts. All your unsecured debts get dealt with during a bankruptcy, minus a few exceptions. Credit cards, tax debts, payday loans, lines of credit and unpaid bills get resolved.

NEGATIVES OF BANKRUPTCY

Does not address the underlying financial problems
Secure debts are still enforceable which could go towards discharging your debt
If you have a high income, you will have to make surplus income payments
Your credit rating is negatively affected
Bankruptcies take longer than other options. First-time bankruptcies take 9 or 21 months depending on your level of income

OTHER OPTIONS INSTEAD OF GOING BANKRUPT

Credit Counselling
Consolidation Loan
Consumer Proposal

Bankruptcy is available to anyone in distress; however, individuals may be seeking a reasonable alternative to bankruptcy, and a proposal is an option provided within the law. A proposal process offers a solution to debts without the requirements expected of you in a bankruptcy proceeding. Still, it arrives at the same goal of you being relieved of your debts and moving forward with your life and leaving the crushing debt you were carrying behind you.

WHY CHOOSE FOX-MILES

Over 40 years of experience
Be treated with respect and kindness
Rhonda comes from a social work background and understands what you are going through
A focus on the human cost, not just the financial cost
Effective credit counselling that addresses the reasons for the bankruptcy

Rhonda Fox-Miles comes from a social work background, which helps her understand what you are going through. Fox-miles will always treat you with dignity, respect and kindness. It can be a stressful time; chose a trustee that treats you like a person, not a number.

We always focus on you. Not just the numbers. We try to make this process as pain-free as possible. We address the root of the problem, not just the symptoms. We want you to succeed.

Call Fox-Miles and associates for your free non-judgemental consultation today. We help you wipe your slate clean.