It's a very daunting process, going bankrupt, but realize you're not at the end of the road. Thanks to Canada's Bankruptcy and Insolvency Act (BIA) and Alberta's own bankruptcy laws, you're actually being offered a fresh start. You now have to chance to change the ways you spend and borrow money and do everything right. For many things in life you never get this option.
That's not to say that filing bankruptcy is a walk in the park either. Your credit rating bottoms out at 0 again and you may have to give up some of your prized assets, not mention all the legal work that goes into it. But don't let this stop you from inquiring.
What bankruptcy may do:
You have the chance to start fresh, debt free
Collectors and creditors will leave you alone
Your financial stresses will be lifted
As long as you can find or have employment you will have the ability to gain back your desired lifestyle
Perhaps you've already begun filing for bankruptcy or you've become overburdened with debts and are looking into your financial options. Meet with an Alberta licensed bankruptcy trustee to learn your options before filing. They will help you learn what to do with creditors and can get you started on the path to freedom from debt.
After all is said and done, know that you will no longer receive harassing phone calls from creditors and collection agencies, nor will you have severe anxieties every time you go to open your mail box because your pile of bills will have all but diminished.
You have a clean slate on which to build your estate on again. This is a wonderful time to teach yourself the tricks to finances, borrowing and lending. Meet with financial advisers, friends or family who have enjoyed financial success and read financial magazines and books to empower yourself and learn how to make smart decisions with your money.
Be thankful that you live in Alberta, where there is a $40,000 exemption allowance for home equity and the allowance to keep one vehicle valued at $5,000. Retirement accounts will also be preserved. Your bankruptcy is not a total loss. You will still have the necessities for life.
You may be surprised to learn that you can begin to rebuild your credit rating between 18 and 24 months if you're a first time filer. If you manage a steady income and are now debt free, lenders may see you as low risk. You can even get a mortgage, though the interest rates will be higher.
This is not a time to be ashamed or fearful. The black cloud of debt is being lifted from your shoulders through your bankruptcy. With some time and financial education you'll be back to building a normal life, debt and stress free. Make smart new financial resolutions and take control of your life again. Going bankrupt is definitely not the end of the world.
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