The Real Deal About Filing for Bankruptcy

Is bankruptcy in Kelowna the only option for you when it comes to getting out of debt? You would want to learn more about it before resorting to it. A lot of people have misconceptions about bankruptcy in Kelowna. Here is the real deal about this method:

False: If you are married, you can only file for bankruptcy if you both do it

This is not true. You don’t always have to resort to this. If you both apply for bankruptcy, that means both of you are affected by the consequences of filing for one such as having a poorer credit score. This is why if one of you has a higher debt, the best thing to do is for that person to file for bankruptcy alone. However, if the debts are incurred by both of you, then that is the time to file for bankruptcy together.

Fact: Your credit score can recover from bankruptcy

It is going to have an effect on your credit score but this doesn’t mean you can’t recover from it. Most of the time, the record will stay for 7-10 years. You can improve your credit rating by then.

 

What happens if you have a poor credit record? They might limit you from having to use your credit card. It can also have an effect when looking for housing or rental apartments.

False: Bankruptcy will absolve you of all debts

Most of the time, only unsecured debts such as personal loans and credit card loans will be forgiven.

Talk to a licensed insolvency trustee such as Mike Wright & Associates if you are planning to get bankruptcy.

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

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