People are usually intimidated by the bankruptcy process. This fear is often based upon misinformation that the person received from the media or from family and friends.
People often don't understand that the intention of bankruptcy is to help rehabilitate the honest, but unfortunate, debtor who finds him/herself in a difficult financial situation. Our Ontario bankruptcy laws are not designed to punish those who go bankrupt. The system is focused on rehabilitation and providing a fresh start.
People may also believe that they will lose their house, car and other assets. This is typically not the case. Most basic assets are exempt from seizure meaning that you keep them. If you have any non-exempt assets, your Bankruptcy Trustee will try to customize a payment plan which will allow you to keep them.
The reality is that most people who decide to file for bankruptcy are relieved after having done so. After meeting with a Trustee, most people wish that they had started the process much sooner.
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