5 Things You Did not Know About Bankruptcy
When any other option is no longer feasible, bankruptcy is a last resort that allows you to prevent the situation from getting worse in order to finally regain control of your life. This is, in other words, a fresh start to regain good financial health. To help you learn more about it, Syndic.ca has created a list of 5 things you may not know about bankruptcy.
1. In many cases, almost no assets are seized during a bankruptcy.
Indeed, declaring bankruptcy does not mean you will lose everything. Whatever happens, you will keep the essentials belongings in order to maintain a reasonable standard of living. You will pay a sum of money on a monthly basis depending on your income and the assets you want to keep. You will not lose the tools required for your work and you will keep the necessary furniture from your main residence. In fact, filing a personal bankruptcy interrupts the seizure procedures and any legal proceedings against you.
2. A first bankruptcy has an approximate duration of 9 months in Canada
Although several factors may affect the duration of bankruptcy, it is usually for a limited time. However, if you did not do your ‘homeworks’, it may affect the time of your bankruptcy and might last longer. It is important to complete the required payments and attend at least two consultation sessions.
3. It is possible to declare bankruptcy even without a job
Unemployed people often find themselves in debt and are unlikely able to pay their accounts. So, in order to relieve themselves of their debts, they may declare bankruptcy. However, they may be required to make monthly payments.
4. You do not have to do the same if your spouse has declared bankruptcy
You are not liable for any other person's debts due to a common-law relationship or marriage. There is, therefore, no bankruptcy between spouses or common-law partners unless you are jointly liable for one or more debts of your partner. For example, if you hold credit cards jointly or have jointly signed a credit or loan application, then you are both responsible for the entire debt. Know that you can also file a bankruptcy jointly.
5. You no longer have the right to own credit cards
The Act requires that you issue all your credit cards to the trustee in the event of bankruptcy, regardless of whether there is a balance due or not. You have no right to access credit during this period.
For more information or to get more advice, do not hesitate to contact us.
