Bankruptcy is a term that most people recognize, but few really understand. As such, there are many myths and misconceptions about Bankruptcy that simply aren’t true. To ensure that you’re making sound financial decisions based upon truths rather than fears, we’re here to help you separate Bankruptcy facts from Bankruptcy fiction.
“If I go Bankrupt, I will lose everything.”
Bankruptcy exists to protect, not punish. There are exemptions in place to make sure that you can enjoy a reasonably comfortable quality of life, with allowances for vehicles, trade equipment, home furnishings, and more.
For a full list of exemptions, see our What Happens To My Assets page.
“Bankruptcy is an admission of failure and/or reason for shame.”
When you file for Bankruptcy, you’re facing up to your situation, and taking the necessary measures to reclaim control of your financial well being.
Admitting that you’ve lost control and taking corrective actions to get back on track takes far more courage than most people realize.
“Bankruptcy is the only option to deal with overwhelming debt.”
While Bankruptcy is considered the final solution to overwhelming debt, it’s quite often not the only solution. When you meet with us for a free consultation, we’ll make sure that we’ve explored all other options, such as Consumer Proposals and Credit Counselling, before finally settling on Bankruptcy.
“My insolvency will need to be announced in the newspaper for everyone to see.”
While this was standard practice many years ago as a way of alerting creditors, most personal insolvency cases no longer require a public announcement in a local newspaper.
“Everyone will know that I’ve gone bankrupt.”
We firmly believe in discretion and client confidentiality, and will do everything in our power to ensure that the only individuals who are informed of your Bankruptcy are your bank, your creditors, and the Fuller Landau Trustee who helps you prepare the paperwork.
“My credit will be ruined for the rest of my life.”
The impact of a Bankruptcy on your credit score is not permanent,and there are ways to begin rebuilding your credit even before your Bankruptcy period has ended.
“I can just ignore the debt that I can’t pay. What’s the worst that can happen?”
A financial crisis doesn’t just go away and resolve itself. Failure to pay creditors can result in constant calls from collection agencies, court action, seizure and repossession of assets, and garnishment of wages.
In addition to these consequences, being deep in debt is extremely stressful, and can lead to health problems and complications. The most effective way to avoid all of these issues is to manage your situation, actively resolve your debt, and take back control of your life. Fuller Landau can help.
“If I don’t have any money, that means I can’t afford to get help and file for Bankruptcy.”
Bankruptcy services are available to everybody.
Consultations at Fuller Landau are always free, and the fees associated with having an Insolvency Trustee are prescribed by the Bankruptcy and Insolvency Act, and are paid monthly. The fee, known as the tariff, is the same across Canada.
If you’re struggling with debt, be sure to consult with an experienced Insolvency Trustee. Book a free consultation today.