When is Bankruptcy the right option?

BANKRUPTCY- Can Someone please tell me why so many people are so scared of this word? Why you Prefer to have bad credit for the rest of your life when a bankruptcy can get you back on your feet within 2-7yrs.

All jokes aside let me try to explain bankruptcy the best I can. Bankruptcy was design to give US a fresh new start in the event that our debts becomes overwhelming.

I believe the right time to go bankrupt is when you have exhausted all other sensible options. I say go bankrupt if you meet any of the following criterias:

1. If you are in a situation were you cannot pay your debt in a manner that will maintain your good credit.

2. If your credit is already really really bad and you have no plans to pay it.

3. If you are trying to pay a consumer proposal ( A consumer proposal gives you almost the same penalties as bankruptcy, just with the added stupidity of still paying it back.)

If you are not in one of the above situations send me a message/comment with your specific situation or talk to a professional before you go bankrupt you may have better options.

Facts about bankruptcy:

A. It will give you a clean slate to rebuild on.

B. Most lender will not extend any credit to you until you are discharged.

C. They say you have to wait seven years, but the fact is I’ve seen people discharged in as little as one and able to rebuild by year three.


P.S. - don’t let anyone tell you stuff goes off your credit in 7 years> it is suppose to be true but what happens is the lenders keep your bad account for lets say 2 yrs then they sell it to collection agencies who registers a collection to your file which stays for 6yrs.. So now we're at eight years altogether but wait.. Collection agencies like to break the rules if they notice anything new on your credit or if they think they'll be able to find you, what some of them do is reregister it every year or so therefore your six years keep starting over.. I’ve seen several people with stuff on their credit for 10-11 yrs all thanks to the collection agencies, with bankruptcy they have to come off period.

By Omari Whyte