In debt…and stressed

February 4th, 2009 by Questions

I owe several thousand dollars…..all are credit cards, line of credit, over draft and one small loan and i now owe the tax department….i have no assets to speak off…I am thinking of filing for personal bankruptsy…I am also unemployed…recently laid off(perm)…How does bankruptsy affect me…

Posted from: Ontario


One Response to “In debt…and stressed”

, A licensed trustee said:

How does bankruptcy affect you? That’s a tall question…

The negatives: most people feel pretty bad about filing for bankruptcy, it is an emotional decision that is not easily reached; your credit rating will be reset to zero and the fact that you filed for bankruptcy will appear on your record for 6 years after the bankruptcy is over; there is a cost associated with bankruptcy – payments based on your income and family size.

The positives: you will obtain releif from your unsecured debts (credit cards, loans, lines of credit, income taxes, etc…); you will be given the basic tools to (hopefully) keep you out of trouble in the future; you’ll feel better once yuo file – not because the debts are gone, but because you’ve put a plan in place to deal with a problem – you are back in charge of your situation.

The experience is unique for every person that files, but overall the process is a positive one. Think of it like goign to the dentist for a tooth ache – yuo don’t want to go, you don’t want to be there, but it feels better (eventually) once the dentist is done…

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