Category Archives: Auto Lease Canada

A brief explanation on Bankruptcy

Bankruptcy is a frightening reality for many people. When you file for bankruptcy, you are making the claim that you cannot afford to pay what you currently owe. Instead of Bankruptcy, many people will try an OPD, an Orderly Payment of Debts, as an alternative. Depending on what your debts are will depend on whether or not they will remain active once your bankruptcy claim is over. However, debts like alimony, child support and mortgages will follow you regardless. Most people believe that when you file for bankruptcy, you lose everything. This is not the case. The federal government leaves you with enough essentials for you to get by and potentially pick yourself back up again. While a bankruptcy claim will follow you forever, it will only stay on your credit report for between 6-7 years, depending on who your credit bureau is. After you file for bankruptcy, a trustee is appointed to you to help you through the bankruptcy process. The federal government will assign you a trustee in order to notify your loaners of the current situation, organize any and all official paperwork, make sure that you attend and complete some credit counselling sessions and help you rid your debt once the bankruptcy claim is over.

Bankruptcy is a terrifying experience, but there is a light at the end of the tunnel. Your credit score will greatly suffer from a bankruptcy claim so this is something that needs immediate repair in order to avoid any future issues. Repairing a credit score will take time, but can be done with a few easy tips. Saving your money, avoiding lavish spending sprees, contributing to an RRSP and keeping track of where you spend your money are a few suggestions.