4 Things to Know About Personal Bankruptcy

Due to the COVID-19 epidemic, are your costs mounting as you're unable to work and are confined to your home? Are you considering declaring bankruptcy as a potential solution to your money problems related to personal bankruptcy? If so, you are not by yourself.

People who are unable to pay their debts, like you, may benefit from filing for bankruptcy. It enables you to start again and eliminate your debt. A bankruptcy filing can also prohibit foreclosures, legal proceedings taken against you, and collection calls from creditors seeking money. One of the most coveted advantages of filing for bankruptcy is this "breathing room." Here are four aspects concerning personal bankruptcy that you should be aware of:


  1. BEWARE OF THE DEBT SPIRAL

Due to the COVID-19 epidemic, are your costs mounting as you're unable to work and are confined to your home? Are you considering declaring bankruptcy as a potential solution to your money problems? If so, you are not by yourself.
People who are unable to pay their debts, like you, may benefit from filing for bankruptcy. It enables you to start again and eliminate your debt. A bankruptcy filing can also prohibit foreclosures, legal proceedings taken against you, and collection calls from creditors seeking money. One of the most coveted advantages of filing for bankruptcy is this "breathing room." Here are four aspects concerning personal bankruptcy that you should be aware of:


  1. GET EXPERT ADVICE

Making withdrawals from a Registered Retirement Savings Plan to settle a credit card might be a mistake that can be prevented by seeking the advice of a professional. Retirement savings should never be touched since creditors cannot seize them (apart from the past-year contributions).

declaring bankruptcy


  1. MAKE A PROPOSAL

If your total debt, not including your mortgage, is under $250,000, you are eligible to submit a consumer proposal, which is an agreement to pay back your creditors by declaring bankruptcy. With this streamlined process, you are able to keep the majority of your possessions, maintain your right to professional practice, if applicable, and repay part of your obligations without incurring interest.


  1. REBUILD YOUR CREDIT

It is simpler to quickly repair your credit reputation using consumer suggestions. Some people do attempt to game the system by making expensive purchases in the weeks prior to filing for Alberta bankruptcies, transferring money to a third party, or selling their home to invest the proceeds in their spouse's name, but those who do so frequently suffer the repercussions: a transfer of property to a stranger can be deemed void if it takes place less than one year prior to bankruptcy, or less than five years when made to a family member.

Alberta bankruptcies

ARE YOU LOOKING FOR FINANCIAL ADVICE?

Learn how to manage your debt through difficult times. Learn how to set priorities in your relationship or what to think about before providing money to loved ones by declaring bankruptcy in Alberta.
Affected by the epidemic and lost your job? Learn how to control your spending and use government assistance programs to help you get through this crisis. If you're worried about your bills, you may also join this on-demand webinar.
There are several nonprofit credit counseling organizations that are available to assist people and families in organizing their personal finances if they are having trouble managing their household debt. Many of these organizations offer highly skilled assistance for little or no money.
Location: Edmonton, AB, Canada

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