o those dealing with a mountain of debt, filing for bankruptcy can seem like the best way out. But is this really the solution you are looking for?
What Is Bankruptcy Anyway and What Does It Entail?
Bankruptcy in Kelowna BC is a legal solution with the BIA or Bankruptcy and Insolvency Act leading it. Those who are struggling with paying off their debts can use this to assist them in dealing with their creditors. You need the help of a Licensed Insolvency Trustee such as Mike Wright & Associates Inc. to be able to file for bankruptcy.
Is It the Best Option?
There are pros and cons to filing for bankruptcy in Kelowna just like everything else out there. The good thing about it is that your debt will eliminate your debts. This only covers unsecured debts or debts that are not tied up to collateral such as personal loans, and credit card debts. This may also include medical debts. As soon as you are discharged, you can start anew.
It can help you with your creditors as well. Creditors may seize your assets such as your home or your car. They may even file a lawsuit against you or take away your wages. But once your bankruptcy is discharged, all these issues with your creditors will halt. It’s a big relief for people who have had to deal with harassment from their creditors.
You will also be able to retain some of your assets. You can retain your house and car. You would want to talk to your Licensed Insolvency Trustee to find out what else can be protected by filing for bankruptcy.
While it does have a negative impact on your credit score, getting rid of much of the burden of the debts allows you to start with a clean slate and work your way towards building your credit score again. It even comes with financial counselling so that you are less likely to suffer from the same financial problems in the future.
Keep in mind though that not all your assets are going to be protected. For instance, they might view a vacation home as something that can be seized to pay for the debts. If you own multiple vehicles, they may also seize the secondary cars. If you have student loans or you are providing child support, those will not be cleared as well. You will still need to pay for them.
Bankruptcy is also a public record. If anyone wants to check up on your financial standing, they can see the records.
If you do decide that this is the best option for you, make sure you get the help of experienced licensed insolvency trustees such as Mike Wright & Associates Inc.
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