What Happens if You Can’t Afford to File an Edmonton Bankruptcy?
Some residents deep in financial trouble feel an Edmonton bankruptcy is the only way out. Rather than schedule a free initial consultation with an Edmonton bankruptcy trustee to learn what they need to do to file, they search for information on the Internet, especially about the cost of bankruptcy. Those with little or no income read the average cost can be between $1,500 and $2,000 and end up doing nothing to help themselves, since they cannot afford the cost.
If your situation is that severe, doing nothing is actually an option. Once you get to the point you cannot pay your bills, the collection calls and letters begin and can build to the point creditors go to court to get a legal judgment that a debt is valid and you are responsible for it.
However, if you own no assets of value and your income is government assistance or too low to be subject to a wage garnishment, there is nothing the creditors can do to turn the judgment into a collection order. They can still harass you with calls and letters for a period of two to ten years. If they have no legal judgment, the Alberta statute of limitations is two years. With a judgment in hand, they have the right to come after you for ten years, should your situation improve.
What’s more, the debts you owe will remain on your credit history for 6 years from the date of last activity, effectively barring you from getting credit. Right now credit may be the last thing on your mind, but if you have hope things will get better for you, doing nothing is not a very good option.
No one should be denied the opportunity to file bankruptcy because they cannot afford to file. The Office of Superintendent of Bankruptcy (OSB) has a program to help impoverished debtors called the Bankruptcy Assistance Program (BAP).
To qualify for the program you must have been turned down by at least two licensed bankruptcy trustees and have no commercial debt. The OSB has a list of trustees willing to work with this program for those who cannot afford to file.
The OSB tells us this program is rarely used. It seems bankruptcy trustees throughout Canada are willing to make special arrangements for those who truly cannot afford the standard costs associated with filing for bankruptcy.
Related posts:
- Will Everyone Know about My Financial Trouble if I File for Edmonton Bankruptcy? Every day we deal with distraught residents in deep financial...
Related posts brought to you by Yet Another Related Posts Plugin.
