Bankruptcy Facts That You Should Not Ignore

Bankruptcy Facts That You Should Not Ignore

Filing a bankruptcy case entails a lot of responsibilities. It is not just about getting help due to a financial downturn on your personal or business side. Here in Calgary, companies filing for bankruptcy is nothing new.

benefits of bankruptcy

Furthermore, the true meaning of bankruptcy lies in your urge to seek help from the government to bounce back from financial problems. The support that you will get from the government will be your key to recovering financially but is subject to approval.

The Facts

Filing a bankruptcy case can spare you from total breakdown. However, be sure that everything is planned well as filing a bankruptcy case can ruin your credit reputation. The impact on your credit standing might last for 10 years.

Are there qualifications?

There are requirements that you need to have to be qualified for a bankruptcy filing. However, be aware that there are consequences to filing bankruptcy. So having a counselor is a great thing to have. They will advise on the necessary measures to do in your pursuit to file a bankruptcy case. This includes the budget plan to help you decide if it is necessary to continue with the bankruptcy filing.

You can either go for Chapter 7 or Chapter 13 and both of them can be a determining factor for you to get back on track. Having said so, you can expect to use it on the following debts:

  • Unsecured debts
  • Debt collection balance
  • Preventing a foreclosure to happen
  • Utility shutoffs

Chapter 7 vs Chapter 13 Bankruptcy

When it comes to a bankruptcy filing, chapter 7 tends to be the most commonly filed. It is also called straight bankruptcy. It only entails that you’ll permit the federal court trustees to handle your asset liquidation. After the sales have been made, they will be sent to your creditors and will lessen your debts.

Aside from that, you still need to process the payments for your other debts. The consequence is your properties will be taken as collateral.

When it comes to Chapter 13, you have the power to stay on your property even if it was taken as collateral. There will be a deadline for you to repay your debts and a 7-year cycle off your credits. The good thing is you’ll be able to get off your debt even if you haven’t completed the entire payment yet.

Key Takeaways

Bankruptcy can be a very intimidating process. However, with the right knowledge for sure, nothing will go wrong. The best thing that you can do is to seek help from a financial expert to ensure that you follow all the processes in filing a bankruptcy case and manage it well until you repay all your responsibilities to the creditors.

If you want to know more about bankruptcy filing, Bankruptcy Calgary Alberta will help a lot. We have deep experience in the bankruptcy filing and throughout the years it has been helping individuals and businesses. So if you are aiming to file a bankruptcy case, do not hesitate to contact us for inquiries.

Leave a comment

Your email address will not be published. Required fields are marked *