Should You Declare Bankruptcy This Year?

The answer to whether or not you should declare bankruptcy this year varies based on each person’s situation.

Most stories are all too familiar. A family or individual accrued too much debt, there were a series unfortunate events affecting someone’s employment, or they simply lost control of their expenses vs. their income and are now forced to live off credit until their situation stabilizes.

If you think you’re in over your head, but aren’t sure what to do about your debt, there are typical reasons a person files bankruptcy.  If one or more of these reasons reflect your current situation, you may want to call a Licensed Insolvency Trustee and declare bankruptcy this year:

1. The Stress is Affecting You: Financial issues can cause stress and affect your health, marriage, or work performance. The stress can cause you to miss work or even lose your job.
2. Your Income Has Been Reduced: It could be a new job with less pay, reduced work hours or family issues that cause reduce income. Any one of these situations can make it difficult for you to maintain your current living expenses and regular payments.
3. Creditors are Harassing You: Creditors are calling because you have fallen behind in payments. Some people don’t know it but bankruptcy does offer immediate protection from calls from creditors, so long as a complete list is provided to your Licensed Insolvency Trustee upon filing.
4. You Fear Losing Your Assets: You feel compelled to protect certain assets that creditors may otherwise be able to take. It’s important to familiarize yourself with the Ontario bankruptcy exemptions. If you’re worried that a creditor may sue you, receive a judgement against you, and then request for a lien on the title to your property, it may be time to call in a professional.
5. You’ve Been Notified of a Garnishment of Wages: In Ontario, your wages could be garnisheed up to 50% of your gross monthly wages. In most cases filing a personal bankruptcy will immediately stop a wage garnishment. If your wages are being garnished, and you file bankruptcy we can notify your employer to stop a wage garnishment within a matter of hours.

That brings us back to the question: “Should I file for bankruptcy this year?”

It’s an important decision to make. Before you make it, ensure that you familiarize yourself with bankruptcy terminology, and the bankruptcy process itself.

If the process goes by the book, and if this is your first time filing bankruptcy, you may receive an automatic discharge nine months after filing. The bankruptcy will be extended for an additional 12 months if you have surplus income. For repeat bankruptcies, the timeline for your discharge will be explained at your first consultation.

When you’re going through financial difficulty it’s easy to turn to friends and family for advice. While this is comforting and a part of the coping process, it’s important to understand the facts. You don’t always lose your possessions in bankruptcy and you can always apply for new credit even during bankruptcy.

Filing bankruptcy may get you the protection and the fresh start that you need. Contact an Ontario trustee today to book your free consultation and discuss your options with a professional.