Bankruptcy in Guelph: The Ted Michalos Bankruptcy Guelph Blog

Can I afford to go bankrupt?

I recently lost my job and have been living on employment insurance since then. I am looking for a new job, but with no job, I’ve been using my credit cards to supplement the EI that I receive. As you can imagine, my financial situation has deteriorated.  I can’t keep up with the huge interest payments every month, and the creditors have been calling for a couple of months now. I am considering bankruptcy, but I was told that you have to pay to go bankrupt. I can hardly afford to survive, let alone pay another bill. How much does going bankrupt cost?

It’s true, there is a cost associated with filing bankruptcy. The amount you will be required to pay is based on your monthly income, the things that you own, and the size of your family.

There are other costs involved as well – any tax refunds or GST cheques that you are eligible to receive during your bankruptcy will be forwarded to your trustee.  In addition, some of the things that you own, like your RRSPs, or equity in your house, may be lost as well.

The benefit of bankruptcy, though, is that you will not be required to service your unsecured debt. Instead of making multiple large payments every month to creditors, your unsecured debts will be discharged and you are only responsible for a payment to your trustee, freeing up more money for living expenses.

Obviously bankruptcy is a serious matter. It shouldn’t be taken lightly and you should be fully aware of all of your rights and responsibilities before filing bankruptcy.

If you have any questions about bankruptcy and how it might affect your life, call me at 310-PLAN. We’ll set up a free consultation to discuss your options. You can also email me any questions you might have. While bankruptcy seems daunting, it may be your chance at a healthier financial future.

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