Advantages of Filing for Bankruptcy

Filing for personal bankruptcy in Canada does present some advantages. Here are some of them.

You are automatically protected from collection action, legal action and wage garnishees. Once you file for bankruptcy, your creditors are no longer allowed to harass you with collection action or legal proceedings and must comply with your bankruptcy plan.

Your unsecured debts are eliminated. Bankruptcy will automatically write off all your unsecured debt. That’s a given. These include all your credit card debt.

It is relatively quick to do. Filing for bankruptcy may be painful, but the process is fairly easy to do, and you can get a discharge in as quickly as nine months provided this is your first bankruptcy and you fulfilled all your duties and obligations.

Finally, bankruptcy can be inexpensive relative to the other options. Compared to consumer proposals or debt consolidation loans, bankruptcy is less inexpensive in that you will not be tied to a monthly payment for severalyears.