How Does Bankruptcy Work in Canada?

If you have serious debt issues, you might think about bankruptcy. However, this option is not an easy way out and is usually considered a last resort. If you think you may need to file bankruptcy, here is important bankruptcy information from your debt consultants at 4 Pillars Consulting Group in Victoria.

Take a Close Look at Your Finances

Do you have a lot of debts and cannot repay them? Perhaps you are dealing with debt collectors and afraid to answer your phone. 4 Pillars Consulting Group in Victoria can help you stop those harassing calls from debt collectors and decide what to do next.

You Need a Trustee

Only licensed insolvency trustee can file a bankruptcy. You need to meet with your trustee and disclose all incomes, assets and liabilities and verify your financial information with them. Here you learn more about the process of bankruptcy, and there are several forms to fill out.

Benefits

Wage garnishments usually stop once you file for bankruptcy. Collection agencies stop calling, and things start to settle down. Issues with your creditors (unsecured debt) get settled by your trustee. You do not have to deal with them. This can alleviate a great deal of stress and your debts eventually get resolved.

Bankruptcy in Canada does not discharge home mortgages or vehicle loans. You cannot get rid of student loan or child support obligations. You are limited on the assets you can keep and your credit rating takes a huge hit.

It is important to weigh the pros against the cons before you decide on bankruptcy. To help you understand all your options, consider talking to 4 Pillars Consulting Group. We know bad things can happen to good people and we are here to help. Click here now to request a call from one of our consultants.