Benefits of Filing for Bankruptcy
BDO certainly understands the stress faced by those considering bankruptcy, and you might not think there are any ‘benefits’ to it. While our Licensed Insolvency Trustees (LIT) always explore every option available to you, and are often able to find an alternate solution, there are, in fact, some benefits associated with bankruptcy. It is important to be aware of these as you consider all of your options and discuss them with a licensed professional.
If, after exploring every debt relief option with an LIT, you decide to file for bankruptcy, you will be able to resolve your debt obligations in a comparatively quick period of time (compared to other debt relief options), allowing you to start rebuilding your credit sooner and putting yourself on track for a brighter financial future.
Other benefits to filing for bankruptcy include the following:
- Stop harassing phone calls from creditors.
- Any aggressive debt collection tactics will cease after you file for bankruptcy.
- Freeze interest payments.
- By filing for bankruptcy, you will no longer have interest added to your debt or be responsible for paying this interest.
- No more legal action against you.
- Filing for bankruptcy puts a stop to any legal claims from creditors made against you, such as a wage garnishment.
- Bankruptcy eliminates your debt.
- Once you’ve been discharged, you will no longer need to make payments toward your unsecured consumer debts.
- Wages are no longer garnished.
- Your employer will no longer take money off your paycheque to pay your creditors.
- Some assets are protected in bankruptcy.
- Please see the asset exemption page to find out what’s protected in your province.
- Bankruptcy can cost less.
- Other solutions, such as debt consolidation loans or a debt management plan, often cost more than bankruptcy as you will have to pay back the full amount owed, plus interest.
If you’d like to know more about filing for bankruptcy, contact your local BDO office to speak with a Licensed Insolvency Trustee.