Although you give up a part of your surplus income during the bankruptcy period, it is significantly less than the total required payments to your creditors prior to the bankruptcy
Your creditors are not allowed to start new legal actions or to continue existing ones against you
The collection calls will stop. Collection agencies are not allowed to try and collect your discharged debts
You are entitled to keep certain property
You will be discharged from all or a significant part of your existing debts and get a fresh start, debt free.
Bankrupts can often re-establish credit within a year or so of being discharged.
WHAT ARE THE CONSEQUENCES OF BANKRUPTCY?
Going bankrupt is a solution to your money problems. It erases most of your debt and gives you a clean fresh start. Over 250,000 people go bankrupt in Canada each year.
Bankruptcy will stop the collections calls, end your debt problems and financial problems. When you can't pay bills, meet your monthly payments, have garnished wages, bad credit missed payments bankruptcy may be the right answer for you.
If you have debts, but no savings, no money and are in overdraft, or at your credit limit with judgments it is time to consider bankruptcy. Credit counselling is a poor solution since you are left with the same debt, spread over a longer period. A consumer proposal may be an interim solution if you can meet the conditions and obligations to make lower payments without missing any.