Advantages and Disadvantages of Filing for Personal Bankruptcy
Filing bankruptcy is often the quickest and cheapest way to get out of debt when you cannot repay. Below is a summary of the advantages and disadvantages of filing personal bankruptcy. Since this is only a summary, we recommend that to learn more, you either read our bankruptcy section (by clicking here) or contact us for a free no-obligation consultation where we will go over in detail everything that you need to know about filing personal bankruptcy.
Advantages of Filing Bankruptcy
- It is often the quickest and least expensive way to wipe out your debts;
- The process can be completed in as little as 9 months
- Can include income tax debts
- Can keep your car, tools and your personal belongings
- Unlike in a consumer proposal, you do not need your creditor’s approval.
Disadvantages of Filing Bankruptcy
- It results in the lowest credit score (an R9) and stays on your credit report for at least 6 years after discharge
- If your monthly income is over the government guideline (see Surplus Income, click here), the cost and length of the bankruptcy is increased
- Not all debts are wiped out (click here to see the list of debts that do not get discharged, even in a bankruptcy)
- Not all assets that you own are exempt. As a result, you could lose non-exempt assets or re-purchase them from the trustee
- Can affect your professional memberships and ability to hold certain type of licenses (if this applies to you, there are other alternatives to dealing with your debt problems).
Interested In Finding Out More?
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