Upwards of 60,000 Canadians file for bankruptcy each year. No one plans on going bankrupt, but in certain situations, it’s the only solution. It’s important to understand how it can help you, as well as some of the downsides of it.
The Credit Impact
A bankruptcy will remain on your credit report for almost 7 years at an R9. This means you may have trouble getting many kinds of loans and lines of credit after filing for bankruptcy for 7 years.
Business Limitations
You will not be allowed to be a director of a company during the period of your bankruptcy. This does not mean you can’t work for such a company. It also doesn’t mean you can’t have a powerful, respected position. For further clarification on this, talk to a professional consultant like the ones at 4 Pillars Victoria.
You Must Attend Counseling Sessions
The objective of the sessions is to help you gain the skills you need to better manage your finances in the future. You shouldn’t look at them as a punishment, but as a tool to expand your financial repertoire.
These are all things that some people find less than pleasant. There are more things you may need to consider as well, and to get personal counseling about this and all the other options available, you can refer to an expert like those at 4 Pillars Victoria. Here are some of the benefits.
Wage Garnishments Stop
If your wages are being taken from you, most, if not all of them will stop when you successfully file for bankruptcy. This puts you in control of your money again.
No More Collection Agency Calls
The law protects you from those annoying calls from collection agencies. You no longer have to cast a suspicious eye on the caller ID each time your phone rings. You’re free from those bothersome intrusions.
Those are some of the benefits. The biggest one, of course, is your debts will be eliminated. There are some debts, such as student loans under 7 years old, that will remain, but the vast majority of types of debt can go away. The key is to really make sure you understand the ins and outs thoroughly. 4 Pillars Victoria wants to help. Their base of knowledge is thorough and deep, and they are ready to use it to give you the information you need on the bankruptcy process but also review all your other options to see if there is a better alternative. Check out their website at 4pillars.ca or give them a call at (866) 690-DEBT (3328).
