About Bankruptcy in Canada

Filing for bankruptcy has become one of the most popular yet terrifying thoughts in every economically challenged home. Most people are nervous about the process and what will happen to their belongings and their reputation. 

The oldest misconception is that if you go bankrupt someone will come to your home and take all of your personal possessions. Every province in Canada has basic exemptions for assets that are exempt from seizure, meaning you can keep them if you go bankrupt. It is possible, under certain circumstances, to keep your car, retirement savings and also keep your house.

Most people don’t realize that it is false to believe that after bankruptcy you will never get credit again and that you will need to wait seven years to clear the damage. It is true that your credit report will reflect a bankruptcy rating for at least six years after your discharge. If you are contemplating the idea, then your credit may already be less than perfect.  The idea behind bankruptcy is to allow someone a chance to start anew. One of our licensed Trustees can show you some practical ways of rebuilding credit quickly that will allow for future mortgages and loans within a few years of discharge.

For couples with financial stress, the main concern is how bankruptcy will affect their spouse. Only shared debts for which a spouse is a co-signer will not be eliminated and therefore be subject to repayment. Only debts that are solely in your name shall be eliminated and your decision to file for bankruptcy will not affect your spouse’s credit report.

Many people decide against bankruptcy for fear that they will be unable to leave the country or possibly go to jail. This usually begins with collection agencies’ overly aggressive tactics to scare people into paying them, but remember that borrowing money is not a crime. If you borrowed money with the intention to repay it and were later unable to follow through, a proactive attitude about getting out of debt will only ensure your rights as an honest citizen. There will be no record on your passport or citizenship due to bankruptcy.

Bankruptcy is obviously not  a desired option and naturally that thought causes most people to disregard the option due to misinformation or lack thereof. By researching your options and addressing your issues, you can overcome debt and any stress that your financial instability may be causing you.

Trustees all share the same training and are regulated by the government to ensure standardization of fees. Therefore choosing a trustee should be based on receiving proper advice and compassion. With nearly 60 years of experience, the Druker and Associates team will demonstrate what sets them apart in what very well be the most important financial decision of your life.

contact a Druker & Associate trustee today for a free, NO OBLIGATION INITIAL consultation and find the answers you need to wipe the slate clean and get a fresh start!