Many people suffer under the crushing weight of debt for far too long. They find their sleep disturbed by worry and they spend their waking hours performing endless mental calculations trying to figure out how they are going to meet all their payments.
Deciding to file for bankruptcy is deciding you want a fresh start. The reason for this is because those debts you worry about now, will be discharged once you complete bankruptcy or finish making your consumer proposal payments.
A bankruptcy discharge or certificate of completion in a proposal is a lawful document that officially and permanently eliminates your debts. By receiving either of these documents, individuals are legally released from all the debts and their creditors can no longer demand payment.
A first-time bankrupt without any surplus income who has fulfilled his bankruptcy duties will receive a full, automatic discharge as early as 9 months after filing. While this can be extended if your income is over the government threshold or you have filed bankruptcy more than once, you can see that the road to debt freedom is not a long one. Even in a consumer proposal, you can make arrangement to repay your debts for a period of up to 5 years but can pay off your proposal earlier if you choose to.
Most unsecured debts are discharged by filing bankruptcy including:
- credit card debt;
- bank loans;
- finance company loans;
- unsecured lines of credit;
- student lines of credit;
- payday loans;
- loans from individuals;
- income and other tax debt;
- student loans under certain conditions.
As you can see, the list is pretty exhaustive. There are a few exceptions:
- support payments;
- student loans if you have not been out of school for 7 years;
- fines and penalties imposed by the Court;
- debts due to fraud.
One of the biggest advantages of bankruptcy or a consumer proposal is that all eligible unsecured debts are eliminated. If you are struggling with any of these debts, we can help you eliminate your debt problems and gain your fresh financial start. Contact us today for a free, no-obligation consultation.