- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
9 Myths About Bankruptcy Services
If you are having financial trouble, declaring bankruptcy is a solution you may want to consider before walking this path. However, many common myths circulate about bankruptcy that are simply not true. Here are nine of them.
1.Everyone will know you declared bankruptcy
It is true that bankruptcies are public information, but you would generally need to do extensive research to obtain that information. Only major bankruptcies are subject to a legal notice published in the news. More often, it is only the creditors and trustees of the client that are informed of the situation. So, more likely than not, your privacy will be observed, and you don’t have to worry about the embarrassment and fall-out of everyone knowing that you declared bankruptcy.
2.Only the financially irresponsible file for bankruptcy
It is a myth that only the financially irresponsible file for bankruptcy—it can happen to anyone! Although financial responsibility may come into play for some individuals, unplanned life events can create the need to file for bankruptcy at any time. Many such individuals who decide to make this decision have dealt with an illness, divorce, job loss, or other financially devastating situations.
3.Your property will be taken away
Another myth associated with declaring bankruptcy is that you will not be allowed to keep your home or any other property you may own. The reality is that bankruptcy allows you to save some property. What you are allowed to keep is dependent on the province in which you reside. For instance, in Ontario, you can keep up to $13,150 worth of furniture and household goods. You can also keep one free and clear vehicle up to a $6,600.00 value. There are many ways in a bankruptcy to keep some of all of your assets in a bankruptcy and your trustee can walk you through the requirements and expectations before you make your final decision.
4.Bankruptcy clears your debt
The truth is that declaring bankruptcy will clear most of your debt. Some exceptions is that it will not clear child support payments or some student loans (i.e. if you last studied less than seven years ago). This also includes court-ordered fines (such as parking tickets), or debt contacted through fraud. Also, contrary to popular belief, bankruptcy can get rid of income tax debt.
5.Bankruptcy has a permanent impact on your credit
Perhaps one of the biggest myths of bankruptcy is that it will permanently impact your credit rating. The creditor bureaus do keep the information about your bankruptcy for a time but generally that is much less time then it would have taken you to get out of the unmanageable debt that was already affecting your credit. Also, having the information in your credit history does not mean you can’t get credit it just means you have to start slow and rebuild creditor confidence.
6.Bankruptcy is the only solution to your financial difficulties
There are many ways to resolve financial difficulties and bankruptcy is just one of them. In some cases, debt consolidation or a consumer proposal can be the best option for people. A consumer proposal is an offer you can make to your creditors to reimburse part or all of your debt (depending on your situation) with no interest for a fixed time period.
It is always best to talk to a seasoned professional about your issues to see if one of these alternative solutions could solve your financial issues. Bankruptcy is a last resort, and a Licensed Insolvency Trustee can help you navigate your best options.
7.You can’t get a loan after declaring bankruptcy
If you are at the point of declaring bankruptcy (or have already done so), odds are your credit has already been badly affected. Therefore, you would have had to wait the allotted amount of time anyway before being able to obtain credit or resolve bad credit. With time and by adopting good habits (like making your payments on time), you will be able to rebuild your credit successfully.
8.You should get help from a debt management advisor before declaring bankruptcy
It is a myth that you should get help from a debt management advisor before declaring bankruptcy. You may be wasting your money for nothing. Only a Licensed Insolvency Trustee is authorized to file an assignment in bankruptcy and it is in your best interest to deal with them directly as they can inform you of all of your options. At Kevin Thatcher & Associates the first consultation is always free; after that, if you choose one of the options the trustee can administer then you will pay a fee depending on the option you choose and/or the arrangement reached between you and your creditors.
9.You could lose your job due to bankruptcy
Your financial situation should not put your job at risk but it can’t hurt to find out about the potential consequences of personal bankruptcy on your career before going ahead with your decision. However, getting out of the debt you are in is generally always better than continuing with unmanageable debt for the foreseeable future.
If you are considering bankruptcy, a proposal, or a consolidation and would like to find out more information, please contact Kevin Thatcher & Associates today to talk to one of our professionals!