Question: When should a person consider bankruptcy in Ottawa? Single Mom with 2 children with an annual income of 35000, but I seem to only make dents in the interest alone. I have finally paid off my student loan but I am maintaining things now. I have yet to inquire about my debts as I don’t want to see what their is let alone have people calling and harassing me all the time without a game plan first. What are the reprecussions of filing bankruptcy to spending the next 15 yrs paying off debt?
Answer: You are correct, bankruptcy is a way to deal with your debts, but it also has some negatives:
First, there will be a note on your credit report for six years after you are discharged, so it will be more difficult to borrow in the future.
Second, while you are bankrupt you are required to make payments based on your income, so if your income increases, your payments increase.
Finally, you may lose some of your assets, such as your tax refund and GST credits.
To determine if bankruptcy is the correct option for you, you should make a list of all of your debts and then call an Ottawa bankruptcy trustee for a free initial consultation, so that you can review your options and decide which option is best for you.
