Pros and Cons of Bankruptcy

The Good & Bad of Filing for Bankruptcy

The advantages & disadvantages of filing for bankruptcy.

Pros of Filing for Bankruptcy

The pros and advantages of filing for bankruptcy include;

  • collection calls will stop,
  • wage garnishments will stop, except for Family Responsibility Payments,
  • Most debts and loans are cancelled,
  • filing for bankruptcy gives you a fresh start.

When you file for bankruptcy, all debts are cleared, wage garnishments and collection agencies will stop calling you.

Cons of Filing for Bankruptcy

The cons and disadvantages of filing for bankruptcy include:

  • bankruptcy affects your credit rating,
    • most people who are considering filing for bankruptcy, the credit rating is probably bad already.
  • you will have to report your monthly income,
    • what payments you made,
    • attend two credit counselling sessions,
    • and provide all tax information to the trustee.
  • you lose any non-exempt assets, (What You Lose in Bankruptcy)
  • you have to make payments based upon your income (Cost to File for Bankruptcy)

When considering the pros and cons for filing for bankruptcy, the pros are much more advantageous than the cons.

After a bankruptcy is discharged, the loans are cleared, your stress will drop dramatically and you’ll get a fresh start.

Once I was laid off work the bills couldn’t be paid, my wife and I fell further into debt.  A friend referred me to YanchDey who really helped.  The bankruptcy has passed, I’m back to work and stress free, Thanks again, I highly recommend these trustees.  Vecus Bennett, Ajax

Benefits of Filing for Bankruptcy

One of of the benefits of declaring bankruptcy is that the trustee will notify your creditors that you are unable to pay your debts.

Creditors must deal directly with the trustee (the trustee will deal with them not you).

Where wages have been garnished, the garnishment will be removed.

When you go bankrupt, you assign your assets (the things you own) to the trustee for the benefit of your creditors, except assets are exempt from seizure.

Even if an asset isn’t exempt, you often have the option to keep it by simply paying its value into your bankruptcy.

Once the process is completed, the debtor is relieved of all debt obligations.

Speak to an Insolvency Trustee

Bankruptcy Trustee Kelly Dey
Kelly Dey Insolvency Trustee

Questions about insolvency and bankruptcy? I invite you to call our office to speak to myself or one of our insolvency trustees.

We’re happy to speak over the phone or in-person at one of our offices.

Where you have questions or need some advice, please feel free to give us a call without cost or obligation.

Call us today at 905-721-7506.

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