It is a myth that you will lose all of your physical possessions by filing for bankruptcy. If your bankruptcy case is a no-asset case, you won’t have to give up any of your assets. At which point you might rather a bankruptcy over consumer proposal because you have less to lose.
When it comes to filing for bankruptcy, some debts are forgiven and some are not. It’s highly unlikely that your student loan debt will be forgiven. However, credit cards, medical bills, and personal loans can be discharged.
Bankruptcy is typically filed by those whose debts are more than 50% of their annual income and foresee difficulty paying it off in five years. Filing is not always the answer to your financial situation, so you’ll need to speak with a Toronto bankruptcy trustee such as Ted Michalos (from Hoyes Michalos) before making this serious decision.
Think you’re ready to find someone to help? Check out a map of bankruptcy trustees across Toronto:
Bankruptcy helps you get rid of:
- Credit card debt
- Past-due rent
- Medical bills
- Personal loans
- Business debts
- Old tax debts
Filing can help improve your credit score and alleviate stress from collection calls. Erased or discharged debt helps improve your credit score after filing for bankruptcy.
The credit bureau Equifax found that credit scores took a severe nose dive approximately 18 months before filing, but then the scores rose. When you file, you could also benefit from automatic stay, which causes all of the collection efforts to come to a grinding halt.
For more information about one of the firms from the map, here’s their exact address:
Hoyes, Michalos & Associates Inc.
8 King Street East
Suite 812 (8th floor)
Need to find someone to help with your debts? You can also visit Find It Near Me .com and select the location nearest you.