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Handle Rising Payments Myths vs. Reality: What You Need to Know

ReBankruptcy is surrounded by many myths that can create unnecessary fear and confusion. Let’s debunk some of the most common myths about bankruptcy and set the record straight.

Myth 1: I Have to Wait Seven Years Before You Can Have Credit

Fact: You can start re-establishing credit immediately after your bankruptcy discharge, which typically occurs within nine months to a year. Secured credit cards and small loans are available options to rebuild your credit.

Myth 2: I Can’t Have a Bank Account

Fact: You can still have a bank account during and after bankruptcy. Managing your account responsibly is crucial to avoiding future financial issues, but having a bank account is certainly possible.

Myth 3: I Can’t Be Self-Employed

Fact: Bankruptcy does not prevent you from being self-employed. You can continue your business or start a new one, although you may face challenges in obtaining credit. It’s essential to manage your finances carefully to avoid further debt.

Myth 4: I Can’t Own a Car

Fact: You can own a car during and after bankruptcy. However, there may be restrictions on the value of the vehicle you can keep, depending on provincial exemptions. Consult with a licensed insolvency trustee for specific details related to your situation.

Myth 5: Your Employer Is Notified

Fact: In most cases, your employer is not notified of your bankruptcy. The only time they might be informed is if there is a garnishment of wages that needs to be stopped. This is a rare occurrence and should not deter you from considering bankruptcy if it’s necessary for your financial health.

Myth 6: Your Name Is Published in the Paper

Fact: For most personal bankruptcies, your name is not published in the paper. This practice is rare and typically reserved for cases involving significant public interest. The confidentiality of your bankruptcy is generally maintained.

Understanding the realities of bankruptcy can help alleviate unnecessary fears and make the process less daunting. If you’re considering bankruptcy, consult with a licensed insolvency trustee to get accurate information and professional guidance.

Call us at 416-534-2777 to schedule a free consultation and start your journey towards a debt-free life.

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