Bankruptcy
Filing for bankruptcy will give you immediate relief from the collection actions most of your creditors have in place. It is your legally declared inability or impairment to pay the creditor.
Advantages
- A solution to a financial hardship situation.
- You have to repay very little, if no money at all, to your creditors.
- You can start fresh.
- Regulated by the federal government through the Bankruptcy and Insolvency Act.
Disadvantages
- Must be handled by a licensed Trustee in Bankruptcy.
- There are fees involved.
- Minimal consumer education on financial literacy.
- Your assets could be liquidated, such as losing your home or repossession of your car.
- A bankruptcy can remain on your credit report for 7 - 10 years.
- Shows as an R9 on your credit report.
- You could lose your job or prevent yourself from getting a promotion.
- A bankruptcy on your credit report could prevent you from purchasing a home or a car.
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