The decision to file for Personal Bankruptcy is never made lightly. For some people in serious financial distress, it is the most effective course of action to eliminate debt once and for all.
Once you have decided – in consultation with a Licensed Insolvency Trustee – to file for Bankruptcy and get started on the process, you may have concerns on how it will impact your life. We shed some light on some commonly asked questions about filing for Personal Bankruptcy:
What Happens After Filing for Personal Bankruptcy?
Will I lose everything I own?
There is a myth that filing for Personal Bankruptcy means you will lose all of your assets, and this is simply not accurate! There are a number of items that are exempt, which will allow you to sustain a reasonable quality of life. These items include a motor vehicle (up to $6,600), household furnishings (up to $13,150), tools of your trade (up to $11,300), RRSP contributions, and certain life insurance and pension plans.
Will I ever be able to have credit again?
Once you have filed for Personal Bankruptcy, it will remain on your record for at least six years after your discharge. Creditors will have access to this information but you can still take steps to rebuild your credit rating, with the guidance of a Licensed Insolvency Trustee (LIT). One way you can establish new credit is by obtaining a secured credit card with a set limit based on the deposit you leave with the bank. By paying in full and on time, you will demonstrate that you can responsibly manage debt, which will help rebuild your credit.
Will everyone know that I’m filing for Personal Bankruptcy?
Many years ago, creditors were notified of Personal Bankruptcies through public announcements in local newspapers. Fortunately, this is rarely the case anymore. We value your privacy and believe strongly in client confidentiality. We will do everything in our power to ensure that only your bank, your creditors, and your Fuller Landau LIT are made aware of your Bankruptcy
Time for a Fresh Start
Take action and eliminate the burden of debt. Contact the team at Fuller Landau Debt Solutions to learn more about your options and the process of filing for Personal Bankruptcy. It’s time to get a fresh start and lead a FULLER life.