For those looking to resolve their debt, there are several options available. Bankruptcy offers many advantages to those looking for a fresh start. Every situation is unique, and it’s important to speak with a Licensed Insolvency Trustee to determine if bankruptcy is the best option for you.
The most important benefit of filing for bankruptcy is relief from debt. However, there are several other benefits to keep in mind.
Below are 5 benefits of filing for bankruptcy:
Protection from creditors
When you file for bankruptcy in Canada, you are provided with immediate protection from your creditors. This means that your creditors must cease all court action against you. As well, creditors are not permitted to harass you for owed money. If you are being harassed by a creditor, contact your trustee for assistance.
Creditors cannot opt out
By law, creditors are not allowed to “opt out” of the bankruptcy process. Once you have declared and filed for bankruptcy, your creditors will not be allowed to pursue you for repayment and must deal solely with your Licensed Insolvency Trustee.
Bankruptcy rules are enshrined in law
Bankruptcy rules and regulations have been set forth by the Federal Government in the Bankruptcy & Insolvency Act (BIA).. If you run into any issues during the process, you are able to seek recourse with the Office of the Superintendent of Bankruptcy, which is the government body that licenses and regulates all Licensed Insolvency Trustees in Canada.
You can be discharged from bankruptcy in a relatively short amount of time
Typically, you can be discharged from a first bankruptcy in anywhere from 9 to 21 months. As well, upon filing for bankruptcy, you will be made aware of how long the procedure will last. This ensures you can achieve financial freedom as quickly as possible.
The cost of bankruptcy is not correlated with what you owe
The cost of filing for bankruptcy is directly related to your financial situation and not the amount you use. Instead items such as the number of people living in your household and the amount of household income that you are responsible for are taken into consideration.
Declaring bankruptcy makes financial sense for many people looking to regain control of their finances. If you are planning on declaring bankruptcy, keep the above benefits in mind and speak with a Licensed Insolvency Trustee today to learn about the bankruptcy process and other debt relief options.