What happens when I declare bankruptcy?

Creditors will stop calling you.

The time when answering the phone, checking your mailbox or going to the door could send you into waves of panic is now over. Feeling harassed by people constantly reminding you of late payments? This feeling is quite normal and, most importantly, quite common. You’re not alone. Bankruptcy trustees are available to help you out. Put an end to this stressful situation! In fact, when you declare bankruptcy, creditors are prohibited from contacting you further (even in order to negotiate an agreement with you). When you take control of your financial situation, it will begin to improve, bit by bit.

Here below are some questions you’re likely asking yourself if you’re thinking about bankruptcy:

Will they seize my car?

Despite what you may have heard, it’s rare for an individual that has declared bankruptcy to lose their car. However, you must determine whether you have the financial resources available to continue paying for your car. If your budget allows you to make the monthly mandatory payment, even after you’ve declared bankruptcy, it shouldn’t be a problem. You can keep it. If you’ve already paid your car off in full and it’s an older vehicle, a used car has little resale value. Surprisingly, this would be to your advantage when it comes to keeping your car. However, keep in mind that should you own a new car paid in full, it could be liquidated. Finally, if you need to purchase a vehicle, there are still options available to you. Contact a trustee; they’ll explain it all to you in greater detail!

And my home?

If the market value of your home is less than or equal to the balance remaining on your mortgage, you should be able to keep it. Very often, a bankrupt individual can make an agreement with their financial institution in order to protect their home. Since each bankruptcy is unique, clarify your situation by talking to an expert.

What will happen to any income I earn?

Good news! Your earnings are almost always protected! A bankrupt individual will often be paid almost all of their wages. However, you should keep in mind that a predetermined amount will be paid on your behalf to your creditors by your trustee.

It is better to take the bull by the horns and not wait too long before consulting a trustee, because complications may arise when bankruptcy isn’t voluntary. Therefore, seek help quickly. If you think you’ve waited too long, though, think again! It’s never too late! Contact a trustee now, and together, you can explore the options available to you!

Take the first step towards freedom!

Fill out the form to the right of your screen to receive advice from a bankruptcy trustee, or call one of the numbers below today:

Montreal: 1-514-360-3009
Quebec: 1-418-476-1947
Sherbrooke and other areas: 1-877-788-7077

For more information, click on the links below:

http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/lf-vnts/bnkrptcy/bnkrptcy-eng.html

Leave a Reply

Submit a request!