This video summarizes the considerations and facts you should know if your are thinking about declaring bankruptcy in Canada. We discuss who can qualify for bankruptcy, the benefits of filing bankruptcy as well as other factors you should consider. Because bankruptcy should always be a last resort, we also talk about the alternatives to bankruptcy.
Should I Declare Bankruptcy.
Do you qualify for bankruptcy?
- Owe $1000+
- Are insolvent.
- Live/do business in Canada
- Have more debts than assets.
Why choose bankruptcy?
- Bankruptcy provides an automatic stay. When you file bankruptcy, your creditors are notified, and all actions against you stop. This includes lawsuits wage garnishments and collection calls and letters.
- You are protected. The terms and conditions for administering your bankruptcy are defined by the Bankruptcy & Insolvency Act. This means all parties are on an equal playing field.
- Bankruptcy can clean unsecured debts. All of your unsecured debts can be dealt with in a bankruptcy., with a few exceptions. You can eliminate your credit card debt, payday loans, tax debts, lines of credit, and unpaid bills.
- Is bankruptcy right for you?
- Bankruptcy cannot solve your issues with overspending.
- Bankruptcy does not get rid of your secured debts.
- If you have a good income, you will have to make surplus income payments.
- Second time bankruptcies take longer and cost more.
- Some of your assets may be seized.
- Bankruptcy affects your credit rating.
Is bankruptcy your only option?
If possible, it’s best to avoid declaring bankruptcy – it should only be used as a last resort. Before you make your decision, it’s wise to discuss other debt solution options with a Trustee in Bankruptcy.
Your debts are small. You have good credit. Your cash flow is good. There is equity in your home.
You can afford to pay back all of your debts. You want one monthly debt payment.
You cannot afford to repay your debts in full. You require protection from your creditors.
Need help choosing the right debt solution? Call 1-866-747-0660. Hoyes Michalos & Associates Inc. Trustees in Bankruptcy. www.hoyes.com.