Advantage of declaring bankruptcy

July 17th, 2007 by Questions

Assume I\’am earning a low income , don\’t have significant assets in Canada to seize and am planning to leave the country in a couple of years…..

Is there any advantage for me by declaring bankruptcy?

The only advantage I can think of is that I will be able to reestablish credit a few years down the line. In my situation it is not going to matter.

There is a disadvantage though , I will be losing the few thousand dollar savings that I have and when I leave I may be reduced to borrowing from friends for my airfare out of Canada.

Instead I could take all my money out of the bank , stuff it in my mattress , just wait for the creditor(s) to get a judgement and start garnisheeing the 20% of my wages that they can. That will probably give me a six to eight month window when I can put away some more money , then let them garnishee for a few more months and finally take my money and fly out of Canada.

Are there any other advantages to declaring bankruptcy in my case?

Questions

One Response to “Advantage of declaring bankruptcy”


, Barton Goth GCO Bankruptcy Trustees said:

The biggest advantages are that you will end the unsecured debt, you will prevent your creditors from being able to pursue you for your debt, and in roughly a year your bankruptcy complete and your life is back to normal again.

From your descritpion the only other thing that I would mention is that if you decide to return to Canada you haven’t left a sitaution that may be difficult to deal with.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)