- Free consultation
- Reduce your monthly payments
- Speak with a debt expert
- Stop collection calls
- Take control of your debt
If you’ve ever carried a debt-load so high that you feel like you are drowning, you probably understand why someone might choose to declare bankruptcy. Sometimes, you make your payments faithfully, but you are never able to get ahead. In fact, you may even be sinking deeper into debt. Maybe you have bill collectors calling you regularly or you have creditors garnishing your wages. Maybe you’ve had a vehicle repossessed. You might even be afraid of losing your home.
Trying to get a car loan after a repossession? Read this.
People find themselves in financial messes for a variety of reasons:
No matter how your debt added up, if you’re unable to pay it back on your own, bankruptcy may be the solution you need.
When it comes to getting help with overwhelming debt, you do have several options. When you seek help early, you will have more alternatives available to you. There are some avenues you might be able to explore before you consider declaring bankruptcy:
Click here to find out how a consumer proposal affects your credit.
Established bankruptcy procedures are similar across the country, but there are some exemptions that are specific to each province. This means PEI bankruptcies may differ slightly from those in other provinces.
Generally, if you owe more than $1,000 and you are unable to pay your debts, you have become insolvent. Usually, with a debt that low, you can explore other options, as discussed above. If your debts are higher or if those options won’t work for you, and you have decided to declare bankruptcy, you will need to do the following:
In the province of PEI, bankruptcy filers can keep a certain number of assets. These include:
As in other provinces, PEI bankruptcies allow debtors to keep Registered Retirement Savings Plans. In most cases, you will be required to surrender contributions you have made in the year prior to filing.
Obviously, there are benefits and drawbacks to choosing bankruptcy for debt reduction or elimination. Every person’s experience will be different. Here are some things to consider before you make your decision:
How long does information remain on your credit report? Read this for more information.
Is it possible to file for bankruptcy online in Canada? Find out here.
Filing for bankruptcy is a big deal. It is never a decision you should take lightly. When you sit down with an Insolvency Trustee, they will help you sort through the numbers along with your available options and assist you in choosing the best route for your situation.
Just know that although going through bankruptcy can be tough, but it isn’t the end of the world. For many, it can be the start of a whole new world where money makes sense. When you learn to budget, spend wisely, save for emergencies and use credit sensibly, you can control your finances instead of having them control you. If you’re interested in seeking the help you need to file for bankruptcy, Loans Canada can help.
Looking for a Licensed Insolvency Trustees? Find out how to find one and how can they help.
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