What does it mean to file for bankruptcy?
Are you thinking to file for bankruptcy? If yes, hop over to this site at first!
According to Canada’s Revenue Agency, bankruptcy is “a legal proceeding applied by Industry Canada under the Radiocommunication Act on Bankruptcy and Insolvency, after which you can be relieved of most of your debts.”
This is the last cure for debt relief that has become impossible to regain. To do this, you have to deal with the manager, who will give all your products and resources to be able to pay your debts, all for a fee.
Some special debts will not be involved in a bankruptcy, such as fines or alimony.
When to bankrupt?
When your debts become too big, you have several billing accounts, you can not make your payments and make use of everything else available. Bankruptcy is full of consequences and is not an ideal solution.
What are the other solutions?
Of course, cost reduction and revenue increase, but this is not always possible. You can also try to reach an agreement with creditors, sell property, consolidate your debts, make a voluntary court filing or make a consumer proposal of a trustee in accordance with your ability to pay.
The latter is increasingly used and a good way to reduce your debt share is not going into bankruptcy, which you immune to the attacks and allowing you to keep your belongings.
What are the consequences of bankruptcy?
There is only one advantage to bankrupt: start from scratch, often without any debt. This is another opportunity. However, the consequences are important. You will be deprived of your property, you will be labeled as “failed” in your credit file that will cause great credit access difficulties for six to seven years after bankruptcy. You will have difficulty getting a property, home, credit line and so on. Even if you rectify your situation later, some institutions refuse any kind of credit to the bankruptcy person.
What to do after bankruptcy?
First, you will have to wait to be released from bankruptcy, usually nine months. During this period all acquired assets must be transferred to the bankruptcy trustee. Then return to nine. To improve your credit reporting profile, you will need to take certain actions:
- Make a budget and stick to it;
- Pay all your bills on time;
- Request a secured credit card and pay it in full every month.
Learn and think about it before making this decision. There are other solutions!