Key Benefits of Filing Bankruptcy - QC Bankruptcy
What are the Benefits of Going Bankrupt in Quebec?
Declaring bankruptcy might sound scary, because of the uncertainties that come with it, but there are many key benefits of filing bankruptcy.
As a matter of fact, if you discuss it randomly with people who have no professional expertise, you might never consider it.
Well, there is a good side to filing bankruptcy in Quebec.
Just take a minute to think of your financial health.
Look at the many debts that you owe, the harassments that come with plus having no peace of mind at all.
If your business is in dire debt, you may probably be sinking into more debts because you are working so hard to keep the business running.
Bankruptcy might be the best solution but before you can make the decision, let’s look into some of the benefits that come with it.
The end to harassing creditor calls
I would like to assume that you don’t like to owe money, at least not when the money is due and you have no means of paying it back.
When in debt the one thing you probably need to have is the peace of mind to think and find a solution to your money problems.
However, this might not be a reality because of the thousand calls streaming in from people you owe demanding for payments.
When you make the bold step to file bankrupt you might just put an end to these harassing non-stop calls.
Through a licensed insolvency trustee you file documents with the federal government then you are officially declared bankrupt.
Once this is done you get protection since your trustee will deal directly with your creditors and at least the weight of your debts is lifted off your shoulders.
Opportunity to eliminate your debts
We land into debts because of varying reasons.
For some, it could be the increasing needs and family commitments, a loan to finance a business that didn’t turn out well, off plan emergencies that arise or simply poor spending habits.
Whatever your scenario is, the underlying problem is that there is an unmanageable debt that needs to be paid.
One of the clear benefits of filing bankruptcy is that it helps you to eliminate these debts.
After you make a sound decision to declare bankruptcy, you get access to a trustee who becomes your principle guide through the process.
They use their professional expertise to conduct an investigation on your finances and devise a repayment strategy to pay off your debts.
An Insolvency trustee will also advise and provide ways in which you can make surplus income to cover your debts.
They will bargain with your creditors to reduce payments when he/she feels that they are being exploitative and charging extra fees or interests.
Walking the journey with a professional once you have declared bankruptcy is a great opportunity to eliminate debts.
Save some of your assets.
When you file for bankruptcy in Quebec there are certain laws that allow you to keep some of your personal assets.
Quebec has a list of bankruptcy exemptions thus your insolvency trustee should be able to advise in case you are not cognizant with the exemptions.
Most bankruptcy exemptions include basic needs such as a house, health aids, and your tools of the trade, clothes and basically stuff that enables you to keep your dignity as you rebuild your life financially.
Prevent creditors from taking legal action
As we mentioned earlier, once you declare bankruptcy, it stops from being a solemn journey towards debt recovery.
You work closely with a trustee who handles your debt in a professional manner.
This legal process ensures that any garnishments against your salary are put to halt, direct payments to your unsecured creditors are stopped and any lawsuit against you from your creditors is also prevented.
This does not mean that you will never pay off your creditors.
Filing bankruptcy simply provides a systematic solution to your unmanageable debt.
Your trustee informs your creditors about your situation then he/she may hold a meeting with them to provide information and direction on their payments.
The trustee will then sell your assets and hold the money in trust to pay off your creditors.
Cheaper compared to other debt management plans
Bankruptcy in Quebec is regulated by the government through the office of the Superintendent of Bankruptcy.
The office is responsible for the administration of the Bankruptcy and Insolvency act.
This means that insolvency trustees are licensed professionals equipped to handle your bankruptcy case.
Licensed insolvency trustee fees are regulated by the government thus you shouldn’t have to worry about being overcharged.
Ideally, it would cost you less to work with a licensed trustee as compared to other debt consultants.
A Fresh start.
Bankruptcy wipes your debt history, you get a clean slate to write a different story of course apart from building a credit rating.
One of the major benefits of filing bankruptcy is this fresh start you receive.
By the time you get your bankruptcy discharge, you will have turned a new leaf.
The credit and debt education you receive makes you wiser and leaves you in a good position to handle money.
However, it takes a lot of commitment and discipline to stay on track.
For instance, if you were paying surplus money to cover your debts, you should be able to save the same amount after discharge.
Opening tax exempts account i.e. RRSPs, paying post-bankruptcy debts and other credit payments on time improves your credit scores.
As a business, bankruptcy is an opportunity to look at your management structure and business model of operation.
It could be time to get rid of the incompetent management that made a series of bad decisions and sunk the company to debts and the likes.
The advice provided by the trustee can help your business rebuild again.
Truth be told bankruptcy is not something you jump into if other debt reduction plans could work.
In fact, before filing bankruptcy you should get a free consultation session from a licensed bankruptcy trustee who will help assess if declaring bankruptcy is the most viable option for you.
If it turns out it is what you need, you will need to look at it as fresh start financially.
It is a process that shouldn’t be frightening!