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Managing excessive is, unfortunately, something we’re never truly prepared to deal with. While there are many debt relief solutions to choose from, often times the most drastic option, bankruptcy, is the best fit. If you live in Brandon and have been considering filing for bankruptcy, we have all the information you need.
Bankruptcy in Brandon is a legal process and agreement where an individual surrenders the things they own in exchange for your debts being eliminated. What you can keep and the exact rules of bankruptcy can vary from province to province. It is designed to be fair to both the individual going bankrupt, and their creditors.
Anyone can file for bankruptcy in Canada as long as they meet a few requirements.
Bankruptcy provides someone who is hopeless, with a second chance and a fresh start. Sure, it can be tough to rebound from, but it has helped countless consumers get back on track.
Bankruptcies in Canada must all be administered by a Licensed Insolvency Trustee (LIT). These are educated and experienced individuals who can help you out with a range of debt-related issues, such as bankruptcy and filing a consumer proposal.
Speaking of costs, the price of a bankruptcy can vary on a number of different factors. Most will pay a minimum of $1800 for the bankruptcy. This is based on the base contribution of $200 a month for 9 months (also be paid at once). However, there are some additional costs you could be responsible for. This includes surplus income payment you when your income reaches a certain threshold as well as the cost of any lost assets.
While bankruptcy might sound like an incredibly long and painstaking ordeal, this isn’t always the case. Bankruptcy can end in as little as 9 months, as long as you have never been bankrupt before and are able to fully complete and abide by all responsibilities and duties.
For more information about surplus income payments, click here.
While bankruptcy in Brandon is certainly a necessary choice for some consumers, it comes with some sacrifices. In addition to potentially losing some of your assets, bankruptcy can also have a negative effect on your credit.
In Canada, all of your credit accounts included in your credit report receive a rating between 1, the best rating and 9, the worst rating. Unfortunately, a credit rating of 9 is what you will get when you file for bankruptcy. This could hurt your ability to borrow money and your credit score will be negatively affected, too. While bankruptcy can last as little as 9 months, it will have a much longer lasting impact on your credit.
Your bankruptcy will remain on your credit report for a total of six years after your date of discharge. If you file for bankruptcy a second time, that one will remain on your credit report for a period of 14 years. While this is quite extreme, sometimes it is a better option to get a fresh start with bad credit than it is to continue struggling with an unbearable amount of debt.
What does bankruptcy discharge really mean? Check out this article to find out.
While bankruptcy can ruin your credit for a while, there is a light at the end of the tunnel. Thankfully, it is possible to repair your credit after filing for bankruptcy in Brandon. Some of the things you can do to repair your credit after a bankruptcy are:
Don’t expect your credit to improve overnight, but if you make the right life changes and choices, you will see your credit begin to improve quicker than you might have expected. Also, it could be beneficial to speak with a credit counsellor in your area to find out ways to help your specific situation.
Now that you know a bit about bankruptcy in Brandon and how it can affect your life and finances, when is the right time to choose bankruptcy? Well, there are a couple of different situations where it makes sense to file for bankruptcy, including:
Remember, bankruptcy is an extreme debt relief option, and all other options should be exhausted first.
However, before even considering bankruptcy in Brandon, you need to make sure it works for your situation and the types of debt you have. While some people think that bankruptcy can free you from all of your debt, this may not actually be the case. Only certain types of debt can be included in a bankruptcy.
Credit card debt and other types of common unsecured debts can most likely be included in your bankruptcy and you will be free from them once you file. Bankruptcy will also stop creditors from bothering you, which can provide you with some peace of mind during a difficult time.
On the other hand, there are also many other kinds of debt that will not be able to be eliminated in a bankruptcy. This includes any secured loans you have (mortgage or car loan), child support or alimony payments, traffic tickets or any other legal-related fines you have accumulated.
What happens to your house when you file for bankruptcy? Find out here.
As a result, it’s important to take inventory of the types of debt you have before even considering filing for bankruptcy in Brandon. If you still aren’t 100% sure if a certain debt you have is able to be included in a bankruptcy or not, it’s a good idea to speak to an expert or financial professional in your area.
Bankruptcy can be a difficult thing to think about or consider, but sometimes it’s the right option for you needs. If you want to find out if bankruptcy is right for you, or just learn a little more about it, feel free to reach out to Loans Canada. We are confident we can help you out and answer the questions you may have.
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