A bankruptcy eliminates most of your unsecured debt and allows you to move forward free from the burden of overwhelming payments – a fresh start.
On filing an assignment in bankruptcy, there is a stay of proceedings which legally stops unsecured creditors from pursuing you for payment. A garnishment of wages or seizure of a bank account will cease allowing you the freedom to spend your income on what is important to you – a fresh start.
A bankruptcy allows you to voluntarily surrender a vehicle that is significantly over-encumbered to lower your monthly expenses and discharge the shortfall – a fresh start.
With the current real estate market and interest rates, many homeowners are finding their mortgage payment is unaffordable but there is insufficient equity in the house to sell and clear the balance owing. An over-encumbered property can be surrendered to the mortgage holder and the shortfall and all legal fees will be discharged in your bankruptcy.
The purpose of a bankruptcy is to provide relief to an honest but unfortunate debtor. Don’t struggle alone – reach out to a Licensed Insolvency Trustee today to see if a bankruptcy can provide you with a fresh start.
By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)
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