What happens if I dont go Bankruptcy
I owe large amounts (>$75,000) to credit card companies and banks.
And not in a possition to pay it back (work contract base and dont make much).
What happens if I don’t declare bankruptcy? Ever!
Is there going to be a criminal charge against me?
I know I wont be able to get any credits from other institutions.
If you don’t go bankrupt you will be responsible to pay each of your creditors in full, including any interest or penalties charged. If you fail to do this you can expect your normal creditors to sue you, and as a result of the judgment they will obtain they will be able to seize bank accounts, garnish wages, attack any property that is not considered exempt in your province, put lien’s on any property, and all of this will be reflected on your credit history report. Their may be other actions that non-standard creditors may be able to take (i.e. CRA can attach a writ to any real property that cannot be extinguished and is treated like a second mortgage or your bank may be able to exercise the right of set-off which gives them the right, even in the absence of court permission, to seize any funds in any of your accounts to pay down any loans held within that same institution…)
My suggestion, if you are unable to make payments in full, meet with a licensed trustee and develop a plan to end the headache. Hiding from debt collection is no way to live life and often by simply filing a consumer proposal or a bankruptcy you will be able to put this nightmare behind you and not have to constantly be looking over your shoulder.