Are your financial obligations keeping you awak at night? Do you endlessly worry about cash flow and how to pay your bills? You may not realize it but overwhelming debt can effect more then just your wallet.

Overwhelming debt can also effect:

• how you live your life
• the way you view yourself
• how you treat the people around you
• how you react to everyday situations
• your overall health

and numerous other aspects of your life. If you are constantly struggling with debt it can be very difficult to preform day to day tasks. If you are drowning in debt and having problems meeting your monthly financial expectations realize you are not alone.

There is someone out there to offer assistance in deciding how to cope with your debt.

If you are unable to pay your bills when they are due, and you have tried everything possible to get back on your feet, such as OPD and Consumer Proposals, then it may be time for you to consider personal bankruptcy.

Filing for personal bankruptcy is a hard choice to make. It is really only ideal for people who need a drastic fresh start, due to a change in life. Personal bankruptcy will help you to eliminate amost or all of your debt, however it will make it difficult to obtain credit in the future.

Before you make the choice to file personal bankruptcy in Canada you will first need to talk to a bankruptcy trustee so you can make an informed decision about your financial future.

Advantages and Disadvantages of Personal Bankruptcy

Personal Bankruptcy does have its advantages. Such as:

• Protection from collection action, legal action and wage garnishees
• Elimination of unsecured and sometimes secured debts
• Quickest option for dealing with debt problems. It is usually dealt with in under 1 year.
• Can be less costly then other options

But personal bankruptcy also has its disadvantages. Such as:

• it basically eliminates your credit score. making it difficult to be granted credit later on.
• You may lose some of your belongings to the bankruptcy
• You are required to keep very detailed records of your income and your expenses. Including where you spend any money you make.

 This is a very brief explanation of the steps you will be required to tak when filing for personal bankruptcy.

• First you will need to find a bankruptcy trustee. 
• With the help of your trustee you will need to prepare a Statement of Affairs, listing all your assests, debts, income, living expenses and other important information.
• You may need to attend a bankruptcy interview with the Official Receiver who is a government official.
• You will be need to attend two financial counselling sessions.
• If you have any assets which you will not be allowed to keep, you will need to help the Trustee sell them.
• You will have to report your income and expenses on a monthly basis to the Trustee.
• You may also need to pay a monthly payment to your bankruptcy trustee. This is based on your monthly income, the size of your family and other circumstances.
• You will be discharged from bankruptcy in 9 months if this is your first bankruptcy and you have follow through on all your obligations.