Yes There is Life after Canada Bankruptcy

Posted by: Krista McDonald on 06/28/2011

Some days we get people in our offices terrified at the declaration of personal bankruptcy they feel they have no other choice but to make.  In their hearts, they believe their lives as they know them are about to end.  Canada bankruptcy offers citizens in deep financial trouble the chance to start over, free of most of their existing debt.  So why are so many people so scared of something meant to help them?

Most of these fears are bred by ignorance of the facts about bankruptcy.  We find a few people who actually fear they could do jail time if they declare bankruptcy with no income or assets to contribute.  This is not true.  Bankruptcy is not a crime.

We find people who fear their spouses will become liable for the debts they successfully discharge in bankruptcy.  This is also not true.  As long as your unsecured credit accounts are in your name only, your spouse has no obligation to repay them.

We find people who fear they will lose their homes, their cars, their furniture, and most of their other possessions, leaving them with little more than the clothes on their backs if they declare bankruptcy in Canada.  This is also not true.  While some people lose some assets, no one loses everything.

But most of all, we find people who are convinced they will never be able to get credit again for as long as they live if they file for bankruptcy.  Once again, this is not true.  In fact, a Canada bankruptcy is often the fastest way to get out debt and rebuild your credit history. 

To learn the facts and alleviate your fears about the fictions, schedule an appointment with a licensed bankruptcy trustee as soon as possible.  There is no charge for an initial consultation.

Here are a few things you should know about life after bankruptcy that might make that initial call to a trustee easier to make. 

If you are losing sleep at night worrying about the collection calls and threatening letters, all that will stop with a declaration of personal bankruptcy.  Canada bankruptcy laws will prohibit your creditors from contacting you in any way.

If your wages have been garnished or you are involved in any kind of collection lawsuit, that too will stop.

Finally, you will no longer be making those crushing monthly debt repayments.  Imagine what it will feel like to look at a checkbook balance with money left over at the end of the month.