Chilliwack Offices: Bankruptcy Solutions
Filing Bankruptcy In Chilliwack
We are a fully Licensed Insolvency Trustees proudly serving Chilliwack and the Province of British Columbia since 2003.
If you are considering filing bankruptcy or are in current financial difficulty and you live in Chilliwack or surrounding areas, please learn more about our services and contact us at our local office below.
What We Are Noticing in Chilliwack:
Residents in Chilliwack and the Fraser Valley Struggle with Overextended Credit.
Residents may be facing increased financial difficulties after entering into long term finance agreements, such as loans for vehicles. For the monthly payments to become more affordable, dealers and loan companies are extending the term of the loans well past the average term of five years. Now it is not unusual for us to see loans extended to 8 years or more.
There are big risks and problems associated with financing a vehicle over a longer period, such as a significant increase in interest and the vehicle depreciating at a rate much faster than you can pay off the loan. Therefore, once the vehicle maintenance costs go up, say after five years, many people will want to sell or trade the vehicle for a newer model. At this point you find yourself in a position where you cannot sell the vehicle at an amount that will pay off the loan and clear the title, or you carry the deficiency balance onto the new vehicle loan. The remaining balance on the loan for the first vehicle is then absorbed by the new vehicle loan and the cycle repeats itself.
This is not only hard on your monthly cash flow, but also impacts your debt to asset ratios. In addition, many car dealers are offering now offering you cash back for other expenses, such as to pay off credit card balances. Again, this increases the amount of debt you have financed against the vehicle. A significant problem we see, is that people take the cash back, and either do not pay the credit card balances, or they do, but then end up using the credit cards again and increasing their debt even further.
If you are facing financial challenges because of financing charges impacting your cash flow, find out the best option for you to deal with your debt.
Individuals who are unable to meet their debt obligations can file for bankruptcy under the Bankruptcy and Insolvency Act (Canada). This process can be stressful. We have the expertise to guide individuals through the process and make sure that you understand your rights.
What are the main benefits of personal bankruptcy?
- You’ll have relief from all of your creditors. If you’re this deep in debt, your creditors have probably been harassing you for payments for a long time. When you file for bankruptcy, your trustee will see that you no longer have to worry about or deal with your creditors directly. You may also benefit from the termination of wage garnishment, if applicable. In short, you can start over.
- You’ll have consolidated all of your debt payments. Your wallet and budget won’t be strained every which way, because you’ll have only one payment and one set interest rate to deal with. The bankruptcy process is designed to get you back on your feet more quickly, relieving you of financial stress.
Why is an insolvency trustee required?
Your trustee will handle all aspects of the bankruptcy process on your behalf.
- Drafting legal documentation
- Dealing with creditors
- Setting personal budget and payment schedule
- Distributing assets
During The Process
If bankruptcy is the right solution, you are now on a course to a better situation. Once your bankruptcy documents are filed, you will continue to work with your Trustee in Bankruptcy to understand your entire income to set a personal budget for you and meet your debt obligations. This means that, until your debts are met, your financial flexibility may be limited. This can be challenging for some, but it is imperative to meet your obligations and discharge your bankruptcy as soon as possible.
Many people that ultimately go this route do feel relief once they make the decision to begin the bankruptcy filing process.
Questions We Often Get Asked About Bankruptcy.
- Can I keep my home if I go bankrupt?
- Will my student loan be included?
- Can bankruptcy help if I owe taxes?
- Will bankruptcy affect my spouse’s credit rating?
- What happens to my vehicle?
- Will I ever be able to have credit again?
- What would you do if you were me?
Alternatives To Bankruptcy
A Consumer Proposal allows you to consolidate your debts and make one monthly payment. You can negotiate with your creditors so that you end up owing less debt overall.
Learn more about how our Chilliwack trustees can help you file a proposal with your creditors.
When credit card debt and other high interest loans get out of control, it may be time to consolidate your debts. A Consolidation Loan is offered by your bank or other financial institution. All of your debts will be rolled into one lower monthly payment with a lower interest rate.
Chilliwack B.C. Offices
46167 Yale Rd. – Suite 102 Chilliwack, BC V2P 2P2
Call Us: 604-392-3533
Directions To Chilliwack Offices: Our Chilliwack office is located in the Chilliwack Business Centre, located a short distance from the court house. Ample free parking is available on the street or in the lot located at the rear of the building.