People prefer drowning in debt than considering options like bankruptcy. Have you wondered why? It’s because of the false information and misconceptions about bankruptcy Kelowna among the public.

Keep reading to discover the truth behind some myths surrounding it.

[1] Bankruptcy Equals to Losing Everything

Some people feel intimidated to consult a licensed insolvency trustee. They think that considering declaring bankruptcy means losing all their assets. But the truth is that Canadian insolvency laws offer protection against certain assets like vehicles and clothing. So, your best interests in terms of living will be protected even after you declare bankruptcy.

[2] You Can Never Eliminate Tax Payments

Some people go into debt for failing to pay taxes on time. While you might think that you can’t remove these debts, bankruptcy in Kelowna allows you to do that. After declaring, you will have to continue paying taxes. But your previous debts for not paying the tax bills will be voided.

[3] Bankruptcy Indicates Poor Financial Management Skills

People often come across challenging economic situations. It can happen due to an illness or job loss. A divorce or other difficult circumstances can also lead to economic struggles. Bankruptcy seems like a prudent option in such moments. But it is in no way an indication of poor financial management abilities. It’s true that not being careful with your money can lead to bankruptcy at times. But the two are not always related.

[4] People with a Job Can’t Declare Bankruptcy

Many believe that having a steady stream of income coming in indicates financial stability. This leads them to believe that filing for bankruptcy in Kelowna BC is not an option as long as they are making money. However, earning is just one part of the overall financial picture. Reach out to a licensed insolvency professional, as they can assist you in exploring appropriate solutions for managing debt even if you have a source of income.

[5] Declaring Bankruptcy Is Easy

It is a viable option to come out of debt. But declaring bankruptcy often comes with long-term consequences. It has a major impact on your credit score. So, you might struggle to obtain financing in the future. Professional insolvency trustees will help you weigh different options and walk on the path to financial freedom.

[6] You Can Go Bankrupt for Free

Several people believe that declaring bankruptcy requires no charges. But that’s not true. You need to work with an insolvency trustee. So, paying their fees is a major expense. You will also have to attend counselling sessions. Moreover, you will have to turn a part of your income to the trustee so that they can pay creditors.

To Conclude

Do you want to go ahead and declare bankruptcy in Kelowna? Get past the myths and consult the right professionals to enjoy a debt-free life.

Shane Taylor is the author of this article. To know more about Debt consolidation in Kelowna please visit our website: debtfreebc.ca