4 Things to Consider Before You File for Bankruptcy

Filing for bankruptcy is never a fun process. For many individuals and businesses, though, it is often the best option. Whether you’re an individual or a business owner, bankruptcy services can get rid of most of your debt, allowing you to start over and become financially secure once again. Debt can cause you a lot of stress over time, and most people do their best to find solutions to this problem. If you’re in a lot of debt and considering this option, there are 4 things you should keep in mind, and they are explained below.

1. The Costs

Yes, you’re in debt, and filing for bankruptcy requires a fee. Fortunately, this fee is based on a number of factors, including the size of your family, your monthly income, how many assets you have, and whether you have been bankrupt in the past. Because of this, you will likely be required to pay some type of basic fee each month, although that fee varies from one individual to another. These fees can also directly affect things such as surplus income, tax refunds, and windfalls, among others, most of which you will likely lose in the bankruptcy.

2. Things You Get to Keep When You File for Bankruptcy

Each individual case is different, and the only way to know for sure is to consult with a professional. As a general rule, however, you are allowed to keep things such as clothing, one vehicle, certain life insurance policies, a certain amount of household appliances and furnishings, a certain amount of the tools you need to make a living, and some savings plans. If you’re wondering about your house, don’t panic. The right bankruptcy Brampton expert will work hard to make sure you keep it.

3. How to Get Started with the Bankruptcy Process

This is fairly straightforward, but it is always best to familiarise yourself with the procedure. For most bankruptcies, the required steps include filling out the initial paperwork and going through a licensed insolvency trustee, who will help you with the rest. Once you file the paperwork, you can count on your creditors to stop contacting you, begin the process of eliminating your debts, and stop all legal actions, including wage garnishments. It is good to know the results can be immediate and even better to know the insolvency trustee will help you through the remainder of the steps so they are a little easier on you.

4. Consideration of Other Alternatives

Most people try not to file for bankruptcy unless they absolutely have to, but knowing your alternatives can help you decide for sure what you want to do. Alternatives include debt management plans, debt consolidation loans, consumer proposals, and the option of paying it on your own. Fortunately, the right trustee can help you decide on the best plan for you.

Bankruptcy is not always the best option, but if you do take this route, there are hundreds of professionals out there who will stick by you from start to finish to make everything as pleasant as possible for you. Regardless of the amount of debt you have or why you amassed it in the first place, these professionals are there to make sure you get the respect you deserve so that, in the end, your finances can start to improve.