Shocking Facts About Filing Bankruptcy
Author: Richard Cooper
Bankruptcy can sometimes be your best way out of an overwhelming debt situation but you should consider how the law forces a Trustee in Bankruptcy to operate in Canada.
The bankruptcy process must be administered by a Trustee in Bankruptcy. Most Trustee's have both an accounting designation and a university degree. They must also pass a bankruptcy and law course. When considering filing for bankruptcy, always deal with a licensed trustee; that is, a trustee who has obtained a license from the Superintendent in Bankruptcy pursuant to the Bankruptcy and Insolvency Act (Canada).
What most people don't know is that even though you pay a Trustee for filing an assignment in bankruptcy, they are working on behalf of the creditors that you owe. That means even though you pay the Trustee to provide a fresh start for you, they are essentially an appointed agent for the creditors and looking after the best interest of the people that you owe. The Trustee works towards returning the creditors money back through the assets you hand over during the bankruptcy process.
You will present all of your debts and most of your assets to the Trustee. Very little of your assets are exempt from bankruptcy. In Ontario for example, you may keep your car if it is worth less than ,650, necessary and ordinary wearing apparel up to ,650, certain tools up to ,300 if required by your trade, up to ,300 of furnishings and certain types of life insurance. Most of your other assets are available for seizure and may be lost including your home, and your investments (except RRSP's and pension plans in certain cases). As a result, always consider doing everything you possibly can do to avoid going bankrupt.
If you owe more then ,000 and your debts have been listed to a collection agency, consider debt settlement as an option. A debt settlement company can help avoid bankruptcy and works towards stopping collection calls by acting as your agent and negotiating a settlement with your creditors. It is an excellent way for you to wipe out your debt fast while saving you a substantial amount of money. In most cases you pay back about half of what you originally owed the creditors and that should include the fees. I have seen people achieve total debt freedom in as little as 30 days if they have access to a lump sum of money; anyone who is a homeowner or has family willing to help should definitely consider this option. Others may take 24-36 months to settle their debt. Unlike a Trustee a debt settlement company is acting for you only; in most cases fees charged are based on the money you save. That means that they will work to save you as much as possible. See http://totaldebtfreedom.ca/ for more information on debt settlement in Canada.
Always look at all of your options when considering bankruptcy. Generally speaking, if you suffer from financial hardship, have very limited income and most of your assets qualify as being exempt from bankruptcy seizure, then it's a good idea for you to get a free consultation from a Trustee about going bankrupt.
Don't be afraid of dealing with your debt. Sometimes bad things do happen to good people or maybe you just made some bad choices in life. The worst mistake you can make is putting it off. Either way if you choose debt settlement or bankruptcy, start your path to debt freedom as soon as you can and get on with living life totally debt free.
You can also speak to our debt consultants for a free consultation by visiting http://www.totaldebtfreedom.ca
Article Source: http://www.articlesbase.com/credit-articles/shocking-facts-about-filing-bankruptcy-555087.html
About the Author
Richard Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca
Looking for bankruptcy fees for under $2,000 in San Diego, CA?
I would like to file for bankruptcy in San Diego. I spoke with a lawyer and the quote for attorney fees, court costs, etc was just over $2,000. I am trying to shop around, but most law firms don’t post rates online. If anyone could recommend a law firm / lawyer that would cost less than $2,000 in the San Diego area – it would be greatly appreciated. Thank You.
Do you know a store similar to BabyStyle? Since it is going out of business now…?
I always liked their clothes because they look like people clothes, not doll looking clothes with weird colors and silly stuff sewn on. They were higher priced, but not unreasonable and things always went on sale.
Some of the toys were unique too and I liked the chairs (they were nicer than pottery barn kids).
Now they have filed for Chapter 11 bankruptcy protection and are closing for good. They don’t take anymore orders online and I don’t live in CA where the last stores are to stock up. Do you know any similar stores or sites?
And I hate the Babys-R-Us here, the staff is always unknowleagable and in a group at the front of the store chit-chatting. I always have to try and help myself or just get frustrated and leave. Plus, the clothes are usually more like the doll clothes I don’t like.
well most bk cost 300 dollars for court cost and the lawyer will run any where from 1500 to 2000 — remember bk laws may be a federal suit but lawyers rates are charge to the local area!!! the 2k price is fair!!!
I really like the things they sell at Carters. Some of their clothes might be “doll-like” but they also have plenty of cute adult-like outfits as well and when I was there the other day, they had a great deal on sale of the kind of clothes you seem to be looking for and I only looked in a small part of the store for a few minutes. Also, I was at Marshalls for the first time the other day to exchange a gift and found that they had some nice clothes too and very cheap! I was surprised. They had some clothes by Ralph Lauren, etc. that I haven’t seen in other places. Anyway I hope this helps…