Bankruptcy is Good

April 11, 2019

Despite all the stigma, bankruptcy is good for helping you solve debt problems.  In fact, bankruptcy is one of the best tools in your arsenal for solving difficult debt problems.  It’s cheaper than filing a proposal, it usually doesn’t linger as long on your credit report as a proposal typically will.

Another reason bankruptcy is good is because it is more immediate and inclusive than most other options including a proposal.  Creditors don’t vote against bankruptcy and they need a good reason to object to a discharge.

Most bankrupts find that their ability to access credit starts to improve following discharge (typically nine months for first time bankrupts).  Bankruptcy can capture government debt as well as institutional lenders.  Anyone over the age of 18 (and in debt more than $1,000) can apply for bankruptcy and you can go bankrupt more than once.

Bankruptcy is the ultimate “Federal Government Debt Relief Programme” – it provides full ‘debt forgiveness’ with a relatively small fee to be paid to the “Officer of the Court” (Licensed Insolvency Trustee). 

After you have filed a bankruptcy you will need to make small monthly payments to your trustee for fees, attend two credit counselling sessions, report your income and expenses each month and provide your tax information at year end.  All in all, pretty simple!