Bankruptcy is a legal process, designed for the honest unfortunate debtor. It is designed to assist an individual out of debt so that they may have a fresh financial start. When you file for or declare personal bankruptcy, you are voluntarily entering into a legal process that provides you with immediate protection against any further action by your creditors.
To find out more about whether bankruptcy may be your best option, please refer to our bankruptcy pages, or call Allan Marshall & Associates for a free consultation.
When financial problems arise, the appropriate information and advice are needed to resolve the problem and reduce stress before it becomes a bigger problem. If left unresolved, financial problems may contribute to other problems such as problems with health or relationships.
Myths about bankruptcy
Often one of the hardest parts about bankruptcy is dealing with inaccurate myths. Often, what people hear about the bankruptcy process is simply not true.
In an effort to dispel some of the myths we have assembled a list of common myths followed by the facts. The myths and facts listed below are a sample of questions commonly asked about Personal Bankruptcy.
Myth: An individual filing for bankruptcy will lose everything.
Fact: No. In fact, many people who file for bankruptcy keep many of their major assets.
Myth: Bankruptcy lasts for 7 years and you can’t get credit for that time.
Fact: A number of factors determine how long a bankruptcy can last, such as income, or whether you are a first-time bankrupt. This answer can vary.
Myth: Student loans cannot be released by bankruptcy.
Fact: Bankruptcy can actually help with student loan debt if you have been out of school for 7+ years.
Myth: If a husband or wife file for bankruptcy or a proposal, then their spouse will also have to file.
Fact: No. Your spouse can decide how they need to proceed based on their own finances.
Myth: Only irresponsible people file for bankruptcy and then are frowned upon by others.
Fact: No. Anyone can file for bankruptcy. Debt problems are common among all ages. The faster you deal with financial problems, the easier they are to overcome.
Myth: If my spouse and/or I file for bankruptcy, the bank will take our house.
Fact: No. Most people that want to keep their homes are able to do so, even in bankruptcy.
Myth: All bankruptcies are published in the paper.
Fact: No. Most personal bankruptcies are NOT published in newspapers, however, Business bankruptcies may be published.
There are a lot of myths about bankruptcy and proposals. For more FAQs about bankruptcy, check out our Frequently Asked Questions section.
If you have questions or concerns please get the facts before making a decision. Don’t allow yourself to make a poor decision based on inaccurate information. Contact us at Allan Marshall & Associates Inc.
Other articles about bankruptcy:
- CRA Tax Debt: Does Government Debt Go Away With A Bankruptcy?
- Avoid Bankruptcy With Other Debt Solutions
- Why Are More Millennials Declaring Bankruptcy in Canada?
- Can You Stop Paying Your Bills Before Filing For Bankruptcy?
- Personal Bankruptcy vs. Business Bankruptcy. What’s the Difference?
- What You Should Know About Bankruptcy Mediation
- Consumer Proposal vs. Bankruptcy in Canada: What Is the Best Option for You?
- Online Bankruptcy Search in Canada: Who Will Know?
- How Fear of Bankruptcy Can Keep You Financially Stuck
- Does Bankruptcy Affect My Car Insurance in BC?
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