Filing Bankruptcy in Victoria

Are you having financial difficulties and starting to believe you can’t get out from under what feels like ever-mounting debt?

Maybe you’re exhausted by the collections calls, your wages are being garnished, or legal action by your creditors has started against you.

If so, chances are that you’ve at least considered filing for personal bankruptcy in Victoria.

Bankruptcy may be your last resort.

Bankruptcy is typically considered a debtor’s last resort.

That’s likely because of the effect it can have on your future ability to get credit, as well as the stigma some perceive as being attached to it.

But bankruptcy also offers significant advantages to those who need it most.

It’s important to understand that a Victoria personal bankruptcy offers a lot of benefits to those experiencing significant financial distress.

Below are just a few advantages to filing for bankruptcy in Canada.

#1. You get immediate protection from your creditors.

Bankruptcy is a legal procedure, one that offers you protection from your creditors so that you can get your financial affairs in order.

Here’s how it works.

Once you file for bankruptcy, an automatic “stay of proceedings” takes immediate effect.

This stay essentially stops your unsecured creditors from starting, continuing, or enforcing any legal action against you to recover on their debt – unless they get express permission from the Bankruptcy Court.

What does this mean for you?

  • You won’t be getting any more phone calls or letters from creditors or collections agencies looking for their money.
  • All garnishments against you will be stopped (except for child or spousal support).
  • Frozen bank accounts will be released.
  • No new lawsuits can be started against you.
  • Lawsuits that have started against you will be stopped.

#2. Bankruptcy takes care of all your unsecured creditors.

Filing for bankruptcy deals with all your unsecured creditors at once.

That’s because unsecured creditors cannot “opt out” of your bankruptcy, which they can do if you proceed instead with, for example, an informal debt settlement or debt management plan.

#3. You stop accruing interest on your unsecured debt.

Once you file for bankruptcy, your debt stops accruing interest.

#4. Bankruptcy may be your most cost-effective option.

This is true in contrast to other debt relief solutions, such as a debt consolidation loan or debt management plan.

In the latter cases, you are required to pay back the full amount of what you owe, plus interest.

#5. Bankruptcy is a relatively quick way to eliminate your debt.

Assuming you complete all your bankruptcy obligations, you will achieve relief from your unsecured debt typically within 9 months of filing – if this is your first bankruptcy.

And once you’ve been discharged from bankruptcy, you will no longer need to make any payments toward the unsecured consumer debts that were handled in your bankruptcy.

#6. Bankruptcy allows you to finally move on with your life.

Once you’ve eliminated the debt that’s holding you back, you can start to rebuild your credit – and your life – giving you the fresh financial start you deserve.

Contact a Licensed Insolvency Trustee today.

Not everyone is eligible for personal bankruptcy.

And because every person’s financial situation is unique, bankruptcy may not be the right solution for every debtor.

To find out more about whether bankruptcy is your best choice, contact a Licensed Insolvency Trustee.

These federally-regulated professionals are the only ones authorized and required by the Canadian government to assist you with filing for bankruptcy.

In our initial, free consultation, we review your entire current financial situation and advise you of the debt relief options you have available to you.

We’ll also give you the pros and cons of each, and our seasoned, personal advice on the best solution for you and your family.

Remember, bankruptcy may not be your only option. The sooner you get help, the more options you may have available to you.

Contact us today for your free consultation.

Image credit: Thomas Malyska (Pixabay)