Personal Bankruptcy Assistance
Personal bankruptcy is a legal process, allowing you to eliminate most of your debts, if not all of them. It is one option for solving your debt problems because it can provide immediate relief from the burden of overwhelming debts.
Details About Personal Bankruptcy
Filing for personal bankruptcy in New Westminster, BC should not be done without some thought. Though this process does give you a fresh start from your debts, it should be thought of as a last resort to resolving your financial problems, one to be taken only after all other options have been exhausted. For many people facing large debts, bankruptcy is the best option as it wipes the slate clean and gives them a fresh start. However, this process can also have lasting effects on your credit, so it’s important to get all the details before you decide. The team at J. Bottom & Associates can help you decide the best course of action for your situation.
Personal bankruptcy is designed for people who are having financial trouble or those who are getting behind on monthly payments and other expenses. It is administered by a Licensed Insolvency Trustee under the Bankruptcy and Insolvency Act (BIA) and is designed to allow an honest, but unfortunate debtor, to gain a fresh financial start.
In bankruptcy you surrender your assets, subject to certain Provincial exemptions, complete certain duties during your bankruptcy; and at the end of your bankruptcy, your debts are eliminated. It’s important to note that your ability to obtain credit in the future will be affected, but you will be able to get rid of most, if not all, of your debts. The cost of filing personal bankruptcy in British Columbia depends on a number of factors including your monthly income, the size of your family, and your assets. Like many things, it is always advisable to obtain two (2) to three (3) quotes for fees. Here are some of the most important things to know about personal bankruptcy:
- You are protected from further legal action by your creditors
- Bankruptcy law provides for something known as an ‘automatic stay,’ preventing creditors from collecting on your unpaid debts prior to bankruptcy
- All unsecured creditors are included in a bankruptcy which also includes income tax
- Eliminates most (if not all) of your debts
- Bankruptcy is about giving you a fresh financial start by eliminating your overwhelming debt
- Begin the process of rebuilding your credit and starting over
We understand the strain that can be caused by facing financial challenges, which is why we are here to help. Get in touch with our team today. We will help guide you to financial solutions you can understand. Learn more about the resources available to you
Advantages & Disadvantages of Personal Bankruptcy
The Benefits of Filing Personal Bankruptcy
- Protects you from legal actions from your creditors
- Eliminates your debts
- Stops collection calls and harassment from creditors
- Stops wage garnishments and protects some of your assets
- Provides for credit counseling to prepare you for a stronger financial future
The Disadvantages of Filing Personal Bankruptcy
- Many people who file for bankruptcy suffer from poor credit for 7 years, and in some cases, up to 14 years, after their bankruptcy is discharged
- It will be difficult to get new loans as well as obtain affordable rent, mortgage, and interest charges
- You may be forced to surrender a large portion of your personal property
- Any income tax refunds accruing in the year of filing will go to the Trustee
What You Should Know About Bankruptcy
You do not lose everything by filing personal bankruptcy in Canada. Bankruptcy is not meant to be a punishment. It provides a fresh start. The Bankruptcy and Insolvency Act, along with provincial legislation in your province, prevents your creditors from seizing certain assets, which may include your car, furniture, and RRSPs within certain limits. We’ve compiled a list of some of the most common questions asked about filing personal bankruptcy in British Columbia. If you have additional questions, please see our FAQ page about personal bankruptcy.