Should I File for Bankruptcy?

I’ve been asked that question quite often and there is no easy answer. Bankruptcy should almost always be the option selected after all other alternatives have been explored and you’re certain your debt is insurmountable. Before you go down the bankruptcy path, you might first want to look at obtaining a loan that could consolidate your debts. Or you may want to evaluate the option of filing a Consumer Proposal. If your financial situation isn’t truly dire, you may be able to evaluate where money could be saved, implement a strict budget and pay off your outstanding debts.

If these other options haven’t worked for you, then it may be time to consider filing for bankruptcy. Bankruptcy is not a complicated process and it will release you from most of your debts, but it’s an option that takes time (from 9 months to 36 months and even more in some cases). It will also affect your credit for years. 

Bankruptcy is often the first option people think of because it is better known and can be cheaper than the other options available. It can also be quickly implemented in a short time span to give you peace of mind and prevent or stop all legal proceedings against you.

Before you file for bankruptcy, you should speak with a licensed Trustee, like those at MNP Ltd. They will be able to help you look at the different options and determine with you which one is best suited for you – whether it’s bankruptcy or otherwise.