What Can Bankruptcy Not Do?

 A lot of people think that filing for bankruptcy in Kelowna can clear all of their debts. However, there is a limit to what Bankruptcy in Kelowna can do.



Typically, bankruptcy can remove your unsecured debts such as credit card debt, utility payments, and personal loans. A debt is considered unsecured if it doesn’t come with collateral like a house. With a house, you are promising to give back the property if you can’t pay it off.

Bankruptcy can also wipe out your secured debts such as a housing loan or car loan. However, the creditor may also have a right to possess the property. If you own a property that is unsecured, that might also be exempted from bankruptcy.

In most cases, your bankruptcy will not stop a secured creditor from possessing a property that is owed to them. Also, it will not stop your obligations from providing child and spousal support. It also usually removes your student loans but this still depends on the creditor. You must prove that it will be hard for you to repay the student loans before they will be approved. It’s also possible to eliminate certain tax debts.

Not all cases for bankruptcy are the same though. This is why it’s important to get the help of a Licensed Insolvency Trustee such as Mike Wright & Associates Inc. With the help of a LIT, you can go over your options and see what else can be included in the bankruptcy. You can bounce back faster once you have this out of the day.

To know more about Consumer Proposal in Kelowna please visit our website: debtfreebc.ca

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