What are the benefits of bankruptcy?
- Bankruptcy provides an automatic stay. All creditors receive notification, and it halts all actions against you when you file for bankruptcy. Lawsuits, wage garnishments, and collection calls all stop. (Click here to understand your rights with wage garnishment in Alberta)
- You have protection. The Bankruptcy & Insolvency act protects you by the terms and conditions of the act. All parties are on an equal playing field.
- Bankruptcy clears unsecured debts. All your unsecured debts are dealt with during a bankruptcy, minus a few exceptions. This includes credit cards, tax debts, payday loans, lines of credit, and unpaid bills. (To learn about the difference between secured and unsecured debt, take a look at this post)