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Here are 10 of the most common reasons that so many people go bankrupt. Medical Expenses. Medical expenses add up quick, and often times, many patients find that they just cannot pay them. Pay Cuts. Loss of Employment. Credit Cards. Overspending. Emergencies. Student Loans. Home Utilities.
Bankruptcy doesnt clear all debts. Most student loans, alimony, child support, any reaffirmed debt, unpaid taxes, government debts or court fines arent cleared in a bankruptcy.
The Canadian bankruptcy discharge process or timeline can take 9 months for first time bankruptcies and up to 36 months for second time bankruptcies to complete.
You could lose assets of value Depending on which type of bankruptcy you qualify for, your income, the equity in your assets and other factors, you may lose your home, your car and other valuable items. Your trustee may be required to sell these items to repay your creditors.
You could lose assets of value Depending on which type of bankruptcy you qualify for, your income, the equity in your assets and other factors, you may lose your home, your car and other valuable items. Your trustee may be required to sell these items to repay your creditors.
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The common causes of bankruptcy include: Expensive Medical Bills caused by a disability or illness. Poor Financial Management related to student loans, purchasing a car or home, etc. Reduced income or job loss. Unexpected emergencies, such as a car breaking down or catastrophic damage to your property.
You could lose assets of value Depending on which type of bankruptcy you qualify for, your income, the equity in your assets and other factors, you may lose your home, your car and other valuable items. Your trustee may be required to sell these items to repay your creditors.
In both cases, the bankruptcy court can discharge certain debts. Once a debt has been discharged, the creditor can no longer take action against the debtor, such as attempting to collect the debt or seize any collateral. Not all debts can be discharged, however, and some are very difficult to get discharged.
If youre struggling, check out your options for debt relief. But bankruptcy may be the best option if your consumer debt the kinds listed above that can be erased equals more than half your income, or if it would take you five or more years to pay off that debt even with extreme austerity measures.
Bankruptcy is meant for individuals who cannot make progress in paying down their debts. If this describes your situation, declaring bankruptcy can provide you with a fresh financial start.

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