When should you file bankruptcy?
If you are here, it indicates that you have questions about personal bankruptcy. While it is important to learn about the topic of personal bankruptcy in the analysis of solutions to debt problems, it is important to understand that there are a large number of variances and nuances of a situation with respect to personal bankruptcy. and that the information you find on the internet should ideally be explained to you by an authorized insolvency trustee.
We at bankruptcy-basics.org’ offer free consultations to answer your questions about file bankruptcy as well as alternatives to bankruptcy, including the consumer proposal.
Why go bankrupt
When we ask why we want to go bankrupt, we should first establish a budget of our revenues and expenses and a list of our important assets and debts.
Subsequently, we can prepare a list of our signs of financial difficulties. Here are some examples :
- Too much spending – your expenses are more important than your income for several months The only way to make ends meet is to borrow more and increase your debt
- Salary seizure – your salary was seized because of unpaid debts
- Minimum Payment – Each month you pay only the equivalent of the minimum payments required and your debt level continues to increase.
- Smothered by your creditors – Your creditors and collection companies keep contacting you and putting pressure on you to pay them back. They threaten you with pursuit and seizure.
- Level of debt too high for your income – Your debt level is so high that you do not know-how with your current income you will go to be able to repay everything.
The next step is to be well advised to choose the best option for YOU.
When to go bankrupt?
We can offer you options OTHER than bankruptcy
Bankruptcy should be one of the last resort. There are several other solutions to over-indebtedness including negotiating with creditors; debt consolidation; the consumer proposal and the voluntary deposit. The authorized insolvency trustee will evaluate with you which is the best solution for you.
Who can go bankrupt?
To qualify for bankruptcy, there are certain criteria to be met:
- Being insolvent – An individual wishing to go bankrupt must be insolvent. This means that you are unable to meet your financial obligations when they are due. There are other criteria to establish that a person is insolvent.
- Debts greater than $ 1,000 – You must have a level of unsecured debt greater than $ 1,000