impact of filing for bankruptcy

Posted on Tuesday, August 5, 2008

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I was wondering, what is the downside of filling for Bankruptcy?
I understand this is a last resort type of thing, but what are the negative effects doing this?

Filed under: Bankruptcy
 posted by Questions @ 6:19 am
1 Expert Comment:

 At August 11, 2008 | 10:32 am , Barton Goth GCO Bankruptcy Trustees Said...

The downside of filing for bankruptcy is as follows:

1. Impact on credit. There is an R-9 that will be listed with the credit bureau for a maximum of 6 years from the date of discharge.

2. No credit cards. When you file for bankruptcy you must deliver all your credit cards to your trustee, irrespective of whether there is money owing on them or not.

3. Tax Refunds / GST Cheques. If you normally receive tax refunds or GST cheques from the government you will automatically loose these things for the year of bankruptcy.

4. During bankruptcy you are not allowed to be a director of a limited company.

This is typically the “downside” of filing for bankruptcy, but it really depends on the nature of your situation. So to determine if you have any assets at risk or anything else you are best to contact a local trustee.

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