Among the main reasons why people choose to declare bankruptcy are job loss, unexpected expenses, high credit card debt and divorce. If you are going through a divorce and are faced with the possibility of having to go bankrupt, you may feel like everything is falling apart around you. However, it is important to remember that bankruptcy could provide you with the financial start you need. Here is the truth about debt, divorce and bankruptcy:
You are not alone when you go bankrupt
Even if you are feeling alone to get through this difficult time, it certainly is not. Many people choose to declare bankruptcy because it allows them to obtain immediate relief and restore their financial situation. In 2016, 24,241 personal bankruptcies were declared in Cebone.
Not only are you not the only one choosing to declare bankruptcy, you will also get support and help throughout the process. Since bankruptcy is an official legal procedure, you will be guided and assisted by a licensed insolvency trustee. Your licensed insolvency trustee will meet with you first to determine if bankruptcy is the best option for eliminating your debts. If you decide together that this is the best option, the Licensed Insolvency Trustee will guide you through the process until your bankruptcy is discharged. At this stage, your trustee will also provide you with resources and information to help you restore your financial situation.
Bankruptcy provides a new financial start
While declaring bankruptcy and filing for divorce are two difficult decisions, it’s important to stay positive. Like divorce, declaring bankruptcy can make a whole new start.
To take advantage of this opportunity, it is important to have a plan. As part of the bankruptcy process, you will be required to attend two mandatory credit orientation sessions. Use these sessions to learn more about establishing sound financial strategies and adopting appropriate financial behaviors as part of your overall financial plan.
You don’t lose everything when you declare bankruptcy
Despite popular belief, it is wrong to think that you will “lose everything” by declaring bankruptcy. It is not true. Each province of Canada has rules governing the assets that can be kept when a bankruptcy is declared. In Cebone, these goods include household furniture and appliances worth $ 7,000 or less, food, gas and clothing, tools and a vehicle required for employment, documents, family photographs, medals and decorations, and all RRSP contributions made 12 months before declaring bankruptcy.
You Can Restore Your Finances After Bankruptcy
It is important to understand that you can restore your life and regain financial health and well-being after bankruptcy. Your licensed insolvency trustee will provide you with the information and resources you need to restore your credit rating and regain control of your finances and debts.