5 Benefits To Filing Bankruptcy: Do They Apply To You?

| Category: Bankruptcy in Ontario
Category: Bankruptcy in Ontario | (3) comments

benefits filing bankruptcyMoney problems happen to many different people for many different reasons.  Too often, debt becomes a cycle and the pressure of paying off all of the debt becomes too much to handle alone.  If you find yourself in the same situation, here are the top five benefits to filing personal bankruptcy:

  1. Stress Relief – The stress of too much debt and burdening money problems can be overwhelming.  The pressure can build over many months, if not years.  By taking action to deal with the situation, that burden is lifted because you now have a plan and a financial goal.  Taking action means that your debt no longer controls you, instead, you control your debt.
  2. Collection Letters and Calls Stop– Receiving collection letters and calls can be threatening and frustrating.  You want to pay them, but you lack the funds to pay what they are demanding. On top of this stress, the banks aren’t willing to help.  Filing bankruptcy legally protects you from collectors and stops the collection calls and letters.
  3. Protection from Wage Garnishment– Bankruptcy protects you from having your wages garnisheed or further legal action being taken against you.  If there is a wage garnishment in place, filing bankruptcy will stop the garnishment.  One exception is that bankruptcy does not stop or change family law support payments.
  4. Legally Deal with the Debts:  A bankruptcy is filed under Federal law with a government licensed trustee.  There are many Debt Consultants advertising that they can eliminate your debts, but they have no legal ability to force this to happen and they cannot ensure that your credit report will be cleared after the completion of your bankruptcy.  Personal bankruptcy is a process for discharging debts.  The government records this discharge with the credit bureaus to ensure that they get cleared over time.
  5. Fresh Start and Living Debt Free –The purpose of filing a personal bankruptcy is about giving the honest, but unfortunate debtor a fresh financial start.  If your debts are overwhelming and just too much to handle alone, then filing a bankruptcy can help to release these debts so that your focus can be on starting to rebuild your finances.  After the bankruptcy is finished, your goals can shift to remaining debt free and saving money for the future.

Consider your situation and all of your options.  If you feel that bankruptcy is the right choice for you, consider your top reasons for filing bankruptcy.  Assessing your situation and coming up with a plan to deal with the debt is the first step to getting your fresh start.  To review your options contact a licensed Trustee in Bankruptcy and book a free, no obligation consultation.

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  1. Tony

    After being separated for many years, my wife and I reconciled. I live in her house now. I pay and contribute to household expenses. I have been living there for about 2 years. We have separate banking accounts and have agreed on ways to split household expenses. Is her home considered a part of my assets? And is her income factored in my “Surplus Income”

    Reply
    1. J. Douglas Hoyes, Trustee

      Hi Tony. If your wife owns the home, and has owned it exclusively for many years, it is her home, and is not considered part of your assets for the purposes of your bankruptcy. If she is your wife and you live together then yes, her income would be factored into the calculation of family surplus income. Your trustee can explain the calculation in more detail.

      Reply
      1. Tony

        Hi, my understanding is that any contributions to an RRSP for the last 12 months would be relinquished in a Bankruptcy application. Does this apply to my wife’s separate RRSP contributions for her own plan?

        Reply

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