Myths & Facts
The questions and answers listed below are a sample of questions commonly asked about Bankruptcy. If you have questions you would like answered please contact Allan Marshall & Associates Inc at 1-888-371-8900. We Can Help!
Myth:	You will lose everything if you file for bankruptcy.
Fact:	In most cases you can keep your car, house, pension, RRSP’s and certain assets are exempt from seizure.
Myth:	If I file for bankruptcy I will not be able to get credit for seven years.
Fact:	The bankruptcy process for most people lasts nine months. Although the fact that you filed for bankruptcy remains on your credit for six years after your bankruptcy, most people are able to start re-establish credit after nine months.
Myth:	Bankruptcy does not cover student loans.
Fact:	Bankruptcy will eliminate student loans if you ceased to be a full or part-time student for at least seven years.
Myth:	Bankruptcy will not cover income tax debt.
Fact:	Income tax debt – personal and business, are covered in bankruptcy.
Myth:	If I file for bankruptcy, my spouse also has to file.
Fact:	If you file for bankruptcy, your spouse does not have to file. However, if the majority of debts are in both names, then both people may need to consider filing.
Myth:	If my spouse and I file for bankruptcy, the bank will take our house.
Fact:	After the latest amendments to the bankruptcy and Insolvency Act in September 2009, mortgage companies cannot foreclose on your home as long as your payments are up to date, even if you filed for bankruptcy.
Myth:	Only irresponsible people file for bankruptcy.
Fact:	Most people who file for bankruptcy do so for factors beyond their control, such as separation/divorce, job loss, reduction in income, illness, death of a spouse, or some other traumatic life event. Most people who file for bankruptcy are honest, educated, hardworking people.
Myth:	If I file for bankruptcy, it will be published in the paper.
Fact:	Most bankruptcies do not require newspaper publication.
Please note, the preceding information is intended to dispel common bankruptcy and other debt myths. If you have questions or concerns about information you’ve heard please contact our office.