The Good Side of Filing Bankruptcy – What You Need to Know

Posted by debtfreebc on December 23rd, 2020

You have tried everything to get out of debt – debt consolidation, budgeting, cutting off your subscriptions, and not eating out. But still, you are left with monumental debt. This is when you need to think of filing bankruptcy in Kamloops.

Bankruptcy has always had a bad reputation. When you file for bankruptcy in Kamloops, that’s when things take a turn for the worse for you, right? A lot of people think it’s the last resort when you have financial problems.

The thing about bankruptcy in Kamloops is that it can be a lifesaver for people who are neck-deep in debt and have no way of getting out. Yes, it’s bad for your credit record but it can offer a lot of good things as well such as the following:

1. You won’t have to worry about creditors hounding you anymore

There is the constant worry that your creditors will come knocking on your door or even threaten you. It’s very stressful and bad for your mental health. But once you have been approved for bankruptcy in Kamloops, all that will stop, giving you such immense relief. Even if it will hurt your credit record, you can at least get some peace and quiet.

2. You can start anew

Rather than be burdened with thousands of dollars of debt, you can now start fresh. You can use what money you have left to build your emergency fund and savings fund. You might not be able to take advantage of the benefits of a good credit record but it’s a start towards getting your life back together.

3. It might be able to protect your assets from creditors

Worried about the state of your possessions and assets? Bankruptcy can provide protection to some of your assets. You might be able to hold on to your assets such as real estate properties and avoid foreclosures or repossessions. It can also protect your wages since the bankruptcy will automatically impose a stay.

4. You can start rebuilding your credit score

You will be left with a bad credit record for about 7-10 years and might not be able to get loans or a mortgage. But if you exhibit good banking habits, you might be able to start getting a better credit score sooner rather than later. This helps you get your finances back on track at the soonest time possible.

But before you can reap these benefits, you should first find out how you can go about the process. Start looking for a Licensed Insolvency Trustee like Mike Wright & Associates Inc who can help you file for bankruptcy in Kamloops. You need to be approved for bankruptcy and prove that you don’t have the ability to pay for your debts.

Shane Taylor is the author of this article. To know more about Consumer Proposal in Kamloops please visit our website: debtfreebc.ca