Bankruptcy may be the only thing that comes to mind when you realize that you can’t afford to pay your debts, your mortgage payments and other bills. You may think that bankruptcy might be a good solution for your debt problems, however, you should know more about your bankruptcy options before taking such a drastic step – what are bankruptcy options?, how much will it cost to file for bankruptcy? how does the process work? and what are the consequences of filing for bankruptcy for me and my family in the future?
If you are experiencing financial difficulties and having problems paying your mortgage payments each month or if you have fallen behind on your mortgage payments and are facing Pre-Foreclosure, our Company, GVCPS, can help you with your debt to avoid a possible bankruptcy by showing you your other options first.
We are a Real Estate Investment Company that can provide you with bankruptcy alternatives and options. We can provide you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit. Our focus is to help you eliminate insurmountable debt and stress. We can help get your mortgage payments back on track or if your lender has issued you a demand letter for your missed mortgage payments, we can help reinstate your mortgage and bring the mortgage back into good standing if you act within the time limits that your lender has provided in their demand letter. If you ignore the demand letter from your lender, your lender will have no choice but to start the formal foreclosure process against you.
It may feel as though bankruptcy is your only option to solve your mortgage difficulties and other debt, however, many people do not explore alternative bankruptcy options first before filing for bankruptcy. More often than not, declaring bankruptcy isn’t a very wise financial decision. You should never take a step as serious as filing for bankruptcy without an accurate understanding of its true costs – some of which will include:
- Filing for bankruptcy is a very costly and time consuming process
- Your lender won’t allow you to renew your mortgage
- Your credit will be damaged severely when you file for bankruptcy
- Your credit will suffer for seven years (and in some cases up to 14) after a bankruptcy is discharged
- It will be difficult to get new credit cards and loans including a mortgage loan
- It will be difficult to obtain the most affordable mortgage, rent and interest rate on credit products, impacting your financial plans and putting your life on hold
- A bankruptcy will also force you to surrender a great deal of your property and other assets. Unless other arrangements are made, you will have to surrender:
- home equity in excess of $12,000 in Vancouver, BC and Victoria, BC and $9,000 elsewhere in British Columbia
- vehicle equity in excess of $5,000
- the value of household items such as furniture minus $4,000
- equity in tools of your trade worth over $10,000
Explore Bankruptcy Options and Alternatives and Be Aware of the Following Bankruptcy Facts:
If you have assets or too much equity in your property, above what you’re allowed to keep in BC, your trustee will sell your property and your assets. It’s not well known, but it takes at least 9 months to go through all the steps of the bankruptcy process. As part of the process, you make payments to your trustee for the costs and fees of going bankrupt, and you also have to attend two bankruptcy counselling sessions. Completing the process and getting discharged takes longer if you need to pay extra to your creditors because of your situation.
You should also know that your bankruptcy trustee, your creditors, the Office of the Superintendent of Bankruptcy or the Court can oppose or delay your discharge. Depending on your circumstances, you may need to attend a hearing, answer questions under oath and/or meet the additional requirements to obtain your discharge from bankruptcy.
There are many bankruptcy options and bankruptcy alternatives available. Contact us to provide you with bankruptcy options and alternatives to you situation. We specialize in helping clients protect equity in their property as well as protecting their credit.