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The Misconception of the True Essence of Bankruptcy

Many think that when a person has a financial problem, bankruptcy is the best solution. In fact, some hide their assets before filing for bankruptcy thinking that they would be richer after bankruptcy for the hidden assets could no longer be subjected to creditors’ claims.

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The Misconception of the True Essence of Bankruptcy

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  1. The Misconception of the True Essence of Bankruptcy Many think that when a person has a financial problem, bankruptcy is the best solution.

  2. Many think that when a person has a financial problem, bankruptcy is the best solution. In fact, some hide their assets before filing for bankruptcy thinking that they would be richer after bankruptcy for the hidden assets could no longer be subjected to creditors’ claims.

  3. Bankruptcy is only a solution of last resort when all other options fail. Nevertheless, there are some misinformed who filed for bankruptcy although another options are still available. As a consequence, they lost their assets including house, cars, RRSPs and investments. And this is so unnecessarily.

  4. The primary purpose of bankruptcy is to enable a person who is loaded with debts (incurred legally without fraud or misrepresentation) with little assets to start life again without the burden of forestalling collection activities from creditors, collection agents or law suits arising from non-payment of debts.

  5. Concerning the cost of filing bankruptcy, everyone who files for bankruptcy would pay a trustee fee regardless of income, assets and liabilities of the person filing, contrary to misconception that there is no fee in filing for bankruptcy.

  6. When a bankrupt person has excess assets or income, she/he may tells his/her friends and relatives that filing for bankruptcy was free for a trustee did ask for a fee. This is a source of misconception, because trustee fee was in fact paid from the excess assets or income.

  7. Before filing for bankruptcy be sure that it is the best solution to solve your financial problem! For More Information On How To Get Out Of Debt Visit here: www.debtcliniccanada.ca

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