Filing for bankruptcy is not the solution for everyone. There are disadvantages to filing bankruptcy that you should consider:
- It has a negative impact on your credit rating although most people who file for bankruptcy already or will soon have a bad credit rating and nothing will make it worse.
- You may be required to surrender some of your assets to the trustee (see our article about what you can keep if you file bankruptcy in Canada)
- You are required to keep detailed records of your income and expenses and submit to your trustee on a monthly basis.
- Depending on your income, it may be a more expensive debt relief option.
There are alternatives to bankruptcy in Canada including the number one alternative: a consumer proposal.
If you are considering bankruptcy, it is because you owe more debt than you can pay. Talking to a professional about all your debt relief alternatives is the best way to find out what you should do.
If you are looking for debt relief, contact an advisor for a no-charge initial consultation.