Bankruptcy is a system or laws and regulations that help individuals and companies to be relieved of debts and allow them to restart their finances. Bankruptcy allows a debtor who is honest but unlucky to have fallen deep into debt to have a fresh beginning without being harassed by creditors. When one is declaring bankruptcy in Nova Scotia, there are two categories to choose from. These are personal and corporate bankruptcy. Personal bankruptcy is filed by individuals while corporate bankruptcy is filed by companies and businesses. According to Halifax bankruptcy, there are a few conditions that you should have fulfilled so that bankruptcy can become your best option. To know more about these conditions, read on.
Filing for bankruptcy is the best option under these conditions
You should file for declaring bankruptcy in Nova Scotia if you owe more money than you earn. If your income is less than your debt, then you should consider filing for bankruptcy. If you are incapable of paying for credit cards and loans, then filing for bankruptcy is a suitable solution. If your bills have piled up and you are incapable of paying them, then you should file for bankruptcy. Moreover, if your wages are garnished, then you should file for bankruptcy. There are a number of benefits of filing for bankruptcy.
Benefits of filing for bankruptcy
Filing for bankruptcy in Nova Scotia often feels like one has fallen and hit rock bottom. Thankfully, there are a number of benefits that one can enjoy to feel relief by filing for bankruptcy. One of these is that your are protected from your creditors after you file for bankruptcy. When you file for bankruptcy, some of your assets that your creditors could have taken are protected from them. Filing for bankruptcy also renders you completely free from most of the debts that you had. You will not have to pay them back. The action of filing for bankruptcy also completely stops any and all garnishments on your wages. In addition to that, you will get counselling on financial matters after you file for bankruptcy. This allows you to have the knowledge that will prevent you from making the mistakes that made you fall into bankruptcy in the first place. Filing for bankruptcy also relieves you from the stress caused by being in debt.
Things to note
For you to file for bankruptcy, you should owe more than $1,000. Moreover, you must be able to demonstrate inability to settle debt payments as they come in. In most cases, the people who file for bankruptcy have debt that is much more than $1,000. They also choose this plan because the value of their debt has exceeded that of their assets. While filing for bankruptcy, one goes for a consultation with a Halifax bankruptcy trustee. This trustee reviews your situation and sees if you are fit to file for bankruptcy. This trustee will also explain to you the steps that are involved in filing for bankruptcy. Any questions that you have about the procedure will be answered by this trustee. The Halifax bankruptcy trustee can also give you access to the resources that you need to clean up your credit ratings, and reconstruct your credit status, as well as resume your path to financial health. Filing for bankruptcy does not indicate an end but a new beginning.