Bankruptcy Last Resort

Divine DebtFreedom.com also offers professional services in the filing of personal or corporate bankruptcy.

The BIA clearly requires that a bankruptcy should only be filed if the debtor does not have the ability to file a suitable proposal. Many creditors perceive the act of filing bankruptcy negatively. Credit ratings and credit scores take a huge plunge to the lowest levels where they will remain for a minimum of seven years and for 14 years for a repeat bankrupt. Any opportunity which requires a credit check, including employment or immigration sponsorship, will most definitely be a lost cause due to bankruptcy. The negative consequences of bankruptcy are indeed high and do not exist in a proposal.

However, there are times when a debtor just cannot make a proposal and is forced to file a bankruptcy due to dire circumstances caused by serious misfortune such as loss of revenue for various uncontrollable reasons or unmanageable debt servicing costs. Very often in these circumstances, it is more meaningful for the debtor to file a bankruptcy as a last resort.

As an honest but unfortunate debtor, you may choose to use the legal process of bankruptcy, regulated by the Act, to obtain a discharge from your debts (subject to reasonable conditions). Bankruptcy is a legal process that may discharge you from most of your debts, subject to reasonable conditions. Once you declare bankruptcy, your unsecured creditors cannot take any further steps, legal or otherwise, to recover the money you owe them.

If you owe more than $1,000 and have carefully reviewed all your options, declaring bankruptcy may be the right choice to make. However, debtors almost never file a bankruptcy for debts that are manageably low to permit a proposal so that they do not have to face the aforesaid negative consequences of bankruptcy.

It is untrue that you would lose all your assets to your creditors in a bankruptcy. There are specific assets which are exempt from seizure. The other non- exempt assets can be paid for and retained by the bankrupt(s). Bankruptcies may be individually or jointly filed, depending on the amount of joint debts.

The Bankruptcy process is strictly monitored by all stakeholders to ensure that all BIA duties are performed and offences avoided by the bankrupt.