While the goal at Frederick & Company is to help avoid bankruptcy, there are times when it is the most appropriate for a given financial situation.
Bankruptcy is a legal process that helps you get out from underneath the burden of your debt while providing you with relief from collection calls. While it’s a comparatively inexpensive option for resolving financial difficulties, it comes with additional obligations.
Unlike A Consumer Proposal:
There is a minimum amount of time you will be required to spend in bankruptcy — 9, 21, 24, or 36 months or more — which is determined based on your income and whether this is your first time filing.
There are reporting obligations during the bankruptcy term, such as providing monthly income and expense statements and tax information to your trustee As well you must attend 2 counseling sessions and always make your monthly payment.
Your income is monitored and if it fluctuates, it impacts the amount you are required to pay — making budgeting for monthly payments difficult. Further, if your income fluctuates you may not know how long you are going to be in bankruptcy until you are well into the process.
Assets vest with your Trustee until you’re discharged from bankruptcy.
Your credit bureau is impacted for 6 years — 14 years for the second time bankrupt — after your discharge from bankruptcy.