Are you bombarded in debt and feeling like there is no way out? Have you gotten yourself into a situation with school debt or personal debt that you can't get your way out? Don't worry you are not alone; there is many people every year that have to face the same reality. Bankruptcy is where you assign everything you own to a trustee to help you eliminate your debt.
Because Bankruptcy is a legal process there are things you must compile to in order to claim bankruptcy. In order to file for this you must live or do business in Canada and be insolvent. The term insolvent means to owe a minimum of $1,000 and not be able to pay your debt. Because you assign everything to a trustee it is important to ensure that they are licensed, and that the fees are regulated and moderate. In return this will ensure that the financial cost is reasonable.
Bankruptcy has some exceptions to having your debt erased and not erased off your record. Unsecure debts like a student loan aren't always discharged and taken off your record, where secure debts are. In some situations some assets are taken from you unless it is personal needs to get by for day to day life. For example a car less than $5,650, clothing less than $5,650, and house hold items less than $11,300 are all exempted from being taken from you as assets because they are personal everyday needs.
Some advantages of bankruptcy, is that it protects you from legal actions, it eliminates debt and it is inexpensive and usually a quick process. Some disadvantages are that is hard on your credit, it may require you to lose some of your possessions and it makes you keep a record of your income and expenses throughout the 9 months.
In conclusion bankruptcy is a solution for individuals who are suffering from personal financial debt, and it allows the individual with a fresh start. Since every individual's finances are different it is important to know that the process is individualized. Some of the causes of someone having to file for bankruptcy is that they may have had a recent job loss, have too much student loan to pay based on your income or coping from an illness or accident. There are solutions outside of bankruptcy as well, but this is one solution that gives someone a fresh start in life.
Want to know more about whether bankruptcy is a good solution for you? Visit Bankruptcy Barrie
