Debunking the Myth of the ‘Easy’ Bankruptcy: Considerations for Homeowners, Car Owners, and Career Professionals | GEM Debt Law
While Bankruptcy can provide relief for those facing overwhelming debt, it is important to dispel the myth of the ‘Easy’ Bankruptcy. For many people, especially those who own a house, car, and have a stable career, Bankruptcy may not be the best solution. In this blog post, we will look at the impact of declaring Bankruptcy, and address why it may not be the right choice for everyone.
- If you declare Bankruptcy what happens to your house?
If you own a house, filing for Bankruptcy may have significant repercussions. While Bankruptcy laws can differ depending on the province you live in, often, the equity you have in your home could be at risk. Bankruptcy courts may consider the possibility of selling your home to repay creditors, leaving you without a place to live. In some cases, the Bankruptcy Trustees could take receivership of your home. This can last until you can pay off the equity and complete the other payments and conditions of your Bankruptcy.
Additionally, obtaining a new mortgage or refinancing in the future may become much more challenging. These may be more difficult to get because of the impact on your credit score and the stigma of Bankruptcy left on your credit report. The Bankruptcy can stay on your credit report for seven (7) years after completion.
- If you file for Bankruptcy, can they take your car?
If you have a car, Bankruptcy can have implications for your vehicle. Depending on the value of your car, you may have to surrender it or repay the debt associated with it. Losing your vehicle can affect your daily life, commute, and financial stability. Finding affordable transportation after declaring Bankruptcy can also be a challenge, especially if your credit score is affected. Vehicle financing can be very limited, again, because of the stigma of Bankruptcy.
- Do Bankruptcies Show Up on Background Checks?
Bankruptcy can have long-lasting consequences on your career. While it does not directly affect your employment status, certain professions may view Bankruptcy negatively. Industries that focus on financial responsibility and trust, such as finance, banking, or government sectors, may scrutinize your Bankruptcy history during the hiring process. Additionally, starting a new business or securing loans for entrepreneurial ventures may become more challenging after the impact of declaring Bankruptcy.
Alternative Solution to Consider:
Considering the potential drawbacks and impact of declaring Bankruptcy, exploring alternative solutions may be prudent for individuals with a house, car, and a stable career.
An option to explore: Debt Settlement
Without declaring Bankruptcy or even filing a Consumer Proposal, work with a Debt Settlement Law Firm to develop a Debt Management Plan. This can allow you to eliminate your debts with creditors. More specifically, legal professionals negotiate with your creditors to waive interest and get your creditors to forgive large portions of your debt balances. These legal professionals know your rights and what the creditors can and cannot do, so they can work for you, to prevent long-term harm to your job, your business, your home and your life. It’s worth considering…
While Bankruptcy may be a good option for some individuals facing severe financial hardship, it is important to understand that it is not an easy fix. This can be especially true for those who own a house, car, and have a stable career, or just a lot to lose…The potential consequences, such as the risk of losing your home, car, or potential career opportunities, can leave you with long-term challenges, which should be carefully considered. Exploring alternative solutions, such as Debt Management and Financial Planning, may be more suitable for individuals in these circumstances.
Remember seeking professional advice from a Debt Settlement Law Firm can provide valuable insights tailored to your specific situation. Contact GEM Debt Law for a free over-the-phone consultation. Our incentive is to save you as much money as possible and to protect only your interests.
If you’re struggling with debt, don’t risk your future. Contact GEM Debt Law today to speak with a representative and get the help you need to make the best decision for your situation.