Considering Bankruptcy in Red Deer Alberta?
Considering Bankruptcy Red Deer, Alberta? Debt can feel overwhelming; Blanchard & Company Ltd. is here to help you discover all of your potential
debt-free solutions so you can take back control of your finances.
Are you having trouble paying your bills? Unable to keep up with debt repayments? When debt piles up and starts to feel crushing, many people think that filing for bankruptcy is their only way out. While this is the right solution for some individuals and families, it may or may not be the right decision for you. Before making a decision that will impact your finances and credit, it is important to understand all of your options and how bankruptcy might affect you.
Debts NOT Discharged in Bankruptcy Red Deer
You may have heard stories of people who eliminated all of their debts through bankruptcy proceedings; however, this may not be the case for your personal situation because not all debts are discharged through bankruptcy.
Some debts are excluded from bankruptcy by law, including:
- Secured debts (creditors who have been given the right to seize collateral if you default on a payment, like a mortgage or car loan)
- Student loans less than 7 years
- Arrears in child and alimony
Personal Bankruptcy Red Deer Alberta
From student loans to utility bills to overwhelming credit card debt, many Canadians find themselves in over their heads. Bankruptcy in Red Deer, Alberta
can seem appealing because it can eliminate your debts in as little as 9 months. The length of the bankruptcy process will vary on a person-by-person basis as your income, size of family, and whether or not you have filed a bankruptcy before impact the process.
Your Licensed Insolvency Trustee (LIT), your creditors, the Office of the Superintendent of Bankruptcy, and the court can all oppose or delay your discharge from bankruptcy. With that said, this is a rare occurrence provided you complete all of your duties.
If you are considering filing for bankruptcy, consider taking advantage of our FREE consultations, as you cannot file for bankruptcy without the assistance of a Licensed Insolvency Trustee (LIT). LITs are overseen by the federal courts and regulated by the Bankruptcy & Insolvency Act to act as a neutral 3rd party during the entire bankruptcy process.
During bankruptcy, you will be required to attend credit counselling sessions. Luckily at Blanchard & Company Ltd., our Licensed Insolvency Trustee (LIT) is licensed to facilitate bankruptcy proceedings AND credit counselling sessions. You can rest easy knowing that your financial situation will remain private and confidential.
Bankruptcy and Your Credit
Filing for bankruptcy will have an adverse impact on your credit rating. In Alberta, once discharged, bankruptcy is shown on your credit report for 6 years after the discharge for a first time bankrupt.. While this might make obtaining credit difficult, Blanchard & Company Ltd. will instruct you on how to repair your credit so that a mortgages or vehicle loan at the best discounted interest rates will be possible during that time.
The committed team at Blanchard & Company have made it their mission to provide all their clients with high-quality and reliable insolvency services in order to relieve them of their financial burdens and set them up for a financially free future.
We care about your privacy. You can feel confident when visiting our safe and judgment-free office, knowing that we’ll provide you with the most suitable insolvency options to fit your needs. Our licensed team of professionals will also provide a thorough education on your current financial conditions and insolvency options, so you can feel confident that you will make well-informed decisions in the future.
FAQ – Bankruptcy Red Deer Alberta
What is the downside to declaring bankruptcy?
Declaring bankruptcy signals to your creditors that you can no longer pay your debts. While it can help eliminate the debt you currently owe, it also severely negatively impacts your credit score. This shows any potential lender that you have had trouble repaying your debts in the past and can lead to a higher rejection rate or higher interest rates.
What will I lose if I declare bankruptcy?
You will be required to liquidate most of your assets to repay your creditors in order to be discharged from bankruptcy, but some of your assets are exempt. You get to keep the basic necessities you need to live comfortably and any items you need in order to adequately perform your job. If you fall behind on car or mortgage payments, your house or car may be repossessed, but they will not be taken in your bankruptcy.
Will all my debts be eliminated if I declare bankruptcy?
A stay of proceedings is issued when you declare bankruptcy, meaning that it stops most collection efforts, including phone calls, wage garnishments, and lawsuits. It also eliminates many types of debts, such as credit cards, personal loans, and overdue bills.
What debts won’t be erased in bankruptcy?
- Alimony and child support
- Student loan debt less than 7 years old
- Reaffirmed debts
- Tickets and fines issued by the court
- Any debt arising from fraud
Is it better to file for bankruptcy or debt relief?
Declaring bankruptcy can free you from your obligations to repay your debts but the negative effects can remain for years to come. Settling your debt though consolidation and other forms of debt relief can sometimes take more time but are able to be negotiated to cause less damage to your credit.
Book your appointment today
Feel confident that you are taking the right steps towards a debt-free future by contacting us today for a FREE consultation.