What’s the process to file for bankruptcy? Will I lose my house or car?
Question & AnswerWhat’s the process to file for bankruptcy? Will I lose my house or car?
3. Look at all of your options
If you are having money problems, is not your only choice. There are other options that can help you keep more of your , like your home or your car. For example, you can:
- make a repayment plan with your creditors, with or without a non-profit counsellor
- work with a financial advisor to plan how to pay off your or get a
- prepare and file a with a
The advantages of bankruptcy include:
- you get rid of most or all of your debts, and
- if it’s your first bankruptcy, you get a ‘fresh start’ after 9 months or 21 months. But the bankruptcy will stay on your for 6 or 7 years after you are discharged from your bankruptcy. A bankruptcy on your report can make it harder to get loans or credit cards in the future.
The disadvantages of bankruptcy include:
- you lose all your credit cards
- you may have to sell some of your assets, which could include your house or car, and
- there is a public record of your bankruptcy that anyone can find. A bankruptcy can make it harder to get a loan or credit card, or rent a place to live in the future.
Even if you file for bankruptcy, there are some debts you might have to pay after bankruptcy.
You can ask your Licensed Insolvency Trustee to recommend options besides bankruptcy to help you deal with your debt.