Declaring Bankruptcy: Canada
It is necessary to indicate that there are quite a number of things that a debt collector will want to hide from you. It is important that you understand that he can neither harass nor take you to jail simply because you owe them money. It is not uncommon for them to aim at ensuring that you do not get to know more about the advantages and disadvantages of declaration of bankruptcy right here in Canada. Read more so as to learn much about these advantages and disadvantages of bankruptcy declaration.
Filing for liquidation will provide you with an avenue to get out of most of your debts. You will realize that a good number of your debts will be eliminated. Once the filing has been done, a good number of your debts will cease to exist. It is however necessary to indicate that not all debts will get to disappear. Some loans are never discharged. For instance, a student loan that is hardly seven years will not go away. You will hardly be bothered by any more calls from creditors. A good number of people hate these irksome calls from lenders given that they are a constant reminder of debts. It is however very fortunate that this problem will be brought to an end as soon as you file for bankruptcy. You will hardly be nagged by these creditors based on the fact that the debt will be no more. You will also find that you will need not to be worried by wage garnishments anymore. You will note that these wage garnishments will burden you financially, emotionally as well as mentally. You will however hardly experience this once you file for bankruptcy. It is however necessary that you keep in mind the fact that this will not have an impact when it comes to family responsibility offices.
This filing does draw a number of disadvantages. You will learn that you will be tasked with a few responsibilities. It will be necessary for you to declare and report your month-to-month income as well as income tax info. It will also be important for you to frequently pay a credit counselor visits. You will also realize that you will drop your non-exempt valuables. These assets comprise of the annual tax refund, property’s equity as well as RRSP contributions. You will however find that there are quite a number of assets that you will remain with. It is also necessary to indicate that your credit score will be lowered. You will learn that the declaration of bankruptcy often comes with the R9 record. It will take six years before this is stripped away from your credit score. Given that you have these benefits and shortcomings, you will definitely be prudent in your decision making.
Supporting reference: imp source