Declaring bankruptcy in Lethbridge is supposed to be a way out of financial difficulties, allowing filers a chance to get a fresh financial start. Of all the stresses of modern living, few compare to the financial stress associated with declining income and rising expenses.
Yet despite its intent, the thought of declaring bankruptcy in Lethbridge actually accelerates the level of financial stress felt by most residents in trouble. When you consider the dire warnings everywhere about the negatives of bankruptcy and how it should be your last resort, this should come as no surprise.
The fact remains that in many cases declaring bankruptcy in Lethbridge should be a quick and cost effective way to get out of debt and eliminate the financial stress that comes from being so deeply in debt.
Why does the thought of bankruptcy raise stress levels instead of reducing them? With one exception, the reasons are tied up in beliefs residents of Lethbridge have about bankruptcy that are not true.
One such belief is that they will surely lose their homes if they file for bankruptcy. Federal and Provincial bankruptcy laws ensure no one loses everything in bankruptcy. Each Province has exemption allowance for what assets a filer can keep and what assets they might lose. Alberta has some of the most generous in Canada, including a $40,000 exemption allowance for home equity.
Another belief is that bankruptcy destroys your credit rating. Debt collectors prey on this fear and rarely get to the real truth that this is a temporary situation. The truth is bankruptcy is actually the fastest way to start rebuilding your credit. All debt solution programs that change the way you repay your unsecured creditors lead to a temporary freeze in your ability to get credit.
You can begin to repair and rebuild your credit rating when you complete the program and the bankruptcy process is the shortest solution out there – debtors are discharged in anywhere from nine to twenty-one months, compared to three to five years with other programs.
An exception to what some people believe goes beyond facts, into the realm of emotion. Bankruptcy is not a crime and expert after expert claim no one should feel a sense of shame when declaring bankruptcy in Lethbridge or anywhere in Canada. However, some Canadians’ value systems include the belief that repaying a debt is a matter of honor and ethics. For them, there is no getting around the fact a declaration of bankruptcy will diminish their feeling of self worth.
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