Filing for bankruptcy Calgary is a difficult decision to make. You will lose all your assets as these have to be liquidated to settle your outstanding debt. That is not the only downside to this situation as your credit rating will be affected too.
Prior to choosing bankruptcy, you should consider the alternatives available to you. One of the alternatives is consumer proposals. The ideal candidates for this proposal are individuals who have a steady income. These individuals are able to pay their debts, however, they need additional time to do so. This method is suitable for those who owe more than $10,000, but less than $250,000.
One of the main advantages of consumer proposals is that it is generally acceptable to creditors. Your creditors will not be allowed to take legal action against you. Your attorney may be able to negotiate that you only repay a portion of the total debt. The consumer proposal is valid for a term of five years. Any garnishee orders against your salary will be terminated immediately. No interest will be charged on the debt, commencing from the date that the proposal is filed.
In the event that you wish to continue with this method, your financial situation will be assessed. Thereafter a calculation must be done to determine what you can afford to repay on a monthly basis. Once an agreement has been reached by both you and your creditors regarding the figures, the documents should be prepared and filed. You have to list all your creditors in this proposal. Your creditors will have 45 days to vote for or against the proposal.
The proposal terms allows you to miss two repayments during the time you have been allowed. This will extend your repayment period by two periods. The proposal will immediately be cancelled if you miss three or more payments. A garnishee order will immediately be instituted against your wages and additional interest added to your account.
If you opt for bankruptcy over an alternative plan, it will be necessary for you to hand your assets to a trustee. This is done to allow the trustee to liquidate the assets in order to settle your debts. The fees due to the trustee will be calculated based on the asset value, your family size and your regular earnings. It may be possible for you to retain some of your assets.
The assets that may be retained include motor vehicles, your principal residence and household goods. Limitations will be placed on the value of the assets you are allowed to retain. Once a successful bankruptcy application has been filed, your creditors will be unable to take any further legal action against you.
Many people who find themselves in this dire situation do not know who to turn to. There are several attorneys who specialize in bankruptcy Calgary who can assist you. You should be open with your attorney and provide them with as much information as possible to make it easier for them to give you relevant advice.
Prior to choosing bankruptcy, you should consider the alternatives available to you. One of the alternatives is consumer proposals. The ideal candidates for this proposal are individuals who have a steady income. These individuals are able to pay their debts, however, they need additional time to do so. This method is suitable for those who owe more than $10,000, but less than $250,000.
One of the main advantages of consumer proposals is that it is generally acceptable to creditors. Your creditors will not be allowed to take legal action against you. Your attorney may be able to negotiate that you only repay a portion of the total debt. The consumer proposal is valid for a term of five years. Any garnishee orders against your salary will be terminated immediately. No interest will be charged on the debt, commencing from the date that the proposal is filed.
In the event that you wish to continue with this method, your financial situation will be assessed. Thereafter a calculation must be done to determine what you can afford to repay on a monthly basis. Once an agreement has been reached by both you and your creditors regarding the figures, the documents should be prepared and filed. You have to list all your creditors in this proposal. Your creditors will have 45 days to vote for or against the proposal.
The proposal terms allows you to miss two repayments during the time you have been allowed. This will extend your repayment period by two periods. The proposal will immediately be cancelled if you miss three or more payments. A garnishee order will immediately be instituted against your wages and additional interest added to your account.
If you opt for bankruptcy over an alternative plan, it will be necessary for you to hand your assets to a trustee. This is done to allow the trustee to liquidate the assets in order to settle your debts. The fees due to the trustee will be calculated based on the asset value, your family size and your regular earnings. It may be possible for you to retain some of your assets.
The assets that may be retained include motor vehicles, your principal residence and household goods. Limitations will be placed on the value of the assets you are allowed to retain. Once a successful bankruptcy application has been filed, your creditors will be unable to take any further legal action against you.
Many people who find themselves in this dire situation do not know who to turn to. There are several attorneys who specialize in bankruptcy Calgary who can assist you. You should be open with your attorney and provide them with as much information as possible to make it easier for them to give you relevant advice.
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