Five Things You Need to Know Before Declaring Bankruptcy

When debt problems force you to consider bankruptcy, it’s important to learn as much

as you can about how it works.

Before you decide, take a moment to review these five facts about bankruptcy

Fact #1: Not all debts are discharged

• Child support and/or alimony

• Fines, fees, or penalties resulting from a court order

• Debts incurred by fraudulent activity

What debts remain after bankruptcy?

Fact #2: You may lose your belongings

• The sale of your non-exempt assets by your trustee is part of the bankruptcy process.

• You won’t lose everything, and there are exemptions.

• Your bankruptcy trustee knows your local laws and help you understand what you can keep.

Fact #3: Your credit will be affected

• Bankruptcy lowers your credit score and can make it difficult to obtain new credit.

• Your filing will stay on your report for seven years.

• You can begin improving your score immediately upon discharge from bankruptcy

Fact #4: Bankruptcy can be a long process•First time filers who are not

required to make surplus payments will be discharged in as little as nine months

•Second time filers who are required to pay surplus income can be in bankruptcy for as long as 36 months.

•Your trustee will determine how long you will be bankrupt based on your financial situation.

Fact #5: You may have alternatives to bankruptcy

• Talk with your creditors, negotiating lower payments and interest rates.

• See if you qualify for a debt consolidation

• Meet with a trustee to see if you qualify for a consumer proposal.

There are a number of things to consider before declaring bankruptcy.

A bankruptcy trustee is a licensed debt professional that can help you decide if bankruptcy is the best option for you.

If you having difficulty managing your debt or if you are having problems with debt collection

in Manitoba or Ontario visit LCTaylor.com

Trustees are available to answer your questions at ourWinnipeg and Kenora locations.

Call us now to schedule your free consultation.