Druker & Associés Inc.
The oldest misconception is that if you go bankrupt someone will come to your home to take all of your personal possessions. Every province in Canada has basic exemptions for assets that are exempt from seizure, meaning you won’t lose them if you go bankrupt. It is possible, under certain circumstances, to keep your car, your retirement savings and even your home. Most people falsely believe that after bankruptcy you will never get credit again and that you will need to wait seven years to regain your credit rating. It is true that the bankruptcy will be on your credit report for at least six years after your discharge. If you are contemplating the idea, then your credit may already be less than perfect. The idea behind bankruptcy is to give you the chance to start anew. One of our licensed insolvency trustees can show you some practical ways to quickly rebuild your credit so you can be eligible for future mortgages and loans within a few years of discharge. For couples with financial difficulties, the main concern is how bankruptcy will affect their spouse. Any shared debts for which a spouse is a co-signer will not be eliminated and will therefore be subject to repayment. Only debts in your name only will be eliminated and your decision to file for bankruptcy will not affect your spouse’s credit report.
- A free, no-obligation consultation is the first step in evaluating your financial situation and reviewing potential solutions. Though you are under no obligation to commit to any services, our certified consultants will provide helpful information and shed some light on the popular misconceptions.