If you are financially unable to repay your bills, filing for bankruptcy can help you start over. If you have little possibility of paying off your obligations in a fair amount of time, this legal procedure may be appropriate for you.
When you declare bankruptcy, almost all of your unsecured debts are eliminated, giving you a clean slate. Your creditors may decide to file you for bankruptcy in specific circumstances. But declaring bankruptcy has major consequences and shouldn’t be done carelessly.
We’ve been providing free debt assistance for many years, and we’ll work with you to determine whether bankruptcy is the best course of action for you. We’ll also take into account a wide selection of other options that might work for your situation.
Advantages to bankruptcy
- Your unsecured debts will be forgiven, allowing you to start again.
- You are no longer subject to future legal action by your creditors to recoup your debts.
- Additionally, they must stop requesting payment, imposing interest, and other fees.
- Your creditors won’t get in touch with you again.
Bankruptcy risks
- Your bankruptcy may involve assets like your home or car.
- Some occupations are impacted, including those in law or finance.
- Your credit report will reflect bankruptcy negatively and for six years.
- A public registry will contain information about your bankruptcy.
Methods for Filing for Bankruptcy
Gathering information about your financial condition, including your income, expenses, and debts, should be your first move.
You should then determine if filing for bankruptcy is the best debt option for you. Use our online tool for guidance or consult with one of our knowledgeable experts.
If we suggest filing for bankruptcy, we’ll explain the process, the dangers involved, and any advantages.
Is bankruptcy a good option for me?
A kind of insolvency, bankruptcy (like an IVA), is typically only appropriate if you are unable to repay your debts within a reasonable amount of time.
Don’t take bankruptcy lightly because it’s a huge step and whatever things you own, like your car or house, could be sold. Additionally, bankruptcy will remain on your credit report for six years and may have an impact on your employment.
You might be required to use some of your available income to make monthly debt payments. A three-year income payment agreement (IPA) is what is used for this.
How is bankruptcy handled?
When you declare bankruptcy, practically all of your debts are eliminated, giving you a clean slate. However, filing for bankruptcy is a huge step that comes with costs and can have an influence on many aspects of your life, including your career or your home.
Any modifications to your situation must be disclosed to the official receiver as well.
Although you may be required to sell important assets like your home or car, you will be allowed to keep the things you require for daily life.
Our guides on bankruptcy
There are several things to think about if you’re considering filing for bankruptcy. You must be fully aware of the implications and how they affect both you and people around you. Our guides on personal bankruptcy offer helpful guidance on the entire procedure.
