Myth: |
Fact: |
"My neighbours & my boss will know." |
FALSE! In reality, only the federal government, your creditors and the trustee are involved. |
"I will lose everything." |
FALSE! Many assets are exempt from seizure (e.g. some vehicles, clothing, household goods, tools of your trade). |
"The newspaper notice of my insolvency will be seen by everyone I know." |
FALSE! Most forms of protection do not require a public advertisement. |
"By filing I am admitting failure." |
FALSE! You are actually showing courage by taking control of the situation and using the rights given to honest people. |
"Bankruptcy is my only option." |
FALSE! Our managers and Ontario bankruptcy trustees will talk to you about how you can reorganize, refinance, budget, make a settlement offer or consumer proposal, and other choices. Remember, bankruptcy trustees are the only debt professionals with a full range of debt relief options. |
"I will never get credit again." |
FALSE! Once you are debt free you are more capable than ever of handling appropriate amounts of debt. The lenders know this. More information.... |
"If I have little money I cannot afford to get help." |
FALSE! We offer free initial consultations. In most cases a trustee will allow you very affordable terms to pay the modest costs. |
"If I file for bankruptcy it's going to affect my spouse who has her own job and is in no way responsible for my debt." |
FALSE! A bankruptcy will only affect the person filing and not in any way reflect on the spouse, including the spouse's credit rating, if the spouse is not responsible for any of the debt. |
"Income taxes cannot be erased in a bankruptcy." |
FALSE! Income taxes and almost all other debts are erased in a bankruptcy. Almost all debtors are discharged or out of bankruptcy in nine months, when most debts are erased. Exceptions are fines imposed by a court, money owing due to theft or fraud, things obtained by misrepresentation, alimony or child support, damages awarded by a court for sexual assault or intentionally inflicting bodily harm, and student loans within 10 years after the completion of studies. |
"If you file for bankruptcy it may cause more family troubles and may even lead to divorce." |
FALSE! Usually, it works just the opposite. Filing bankruptcy is not the problem. The problem is not being able to pay your bills. All good, honest, hard-working people feel a strong need to pay their bills, and not being able to do so causes them to feel tremendous stress.
Bankruptcy starts to relieve the stress because as soon as bankruptcy is filed there is an immediate stay of proceedings. That means creditors cannot take any action to seize assets, other than those signed over as security in the event of non-payment. Nor can creditors seek a court order to garnishee wages. Collection calls also stop once the debt collector knows the individual has filed for bankruptcy.
If your experience is like that of other couples, you will find that filing bankruptcy will lower the stress level on the marriage and give your marriage a fighting chance. |
Overview: