No one wants to admit that they have let their finances get out of hand or that they have failed at keeping a part of their life in control. But, sometimes we have times in our lives when we are hit with the unexpected and you can't help things falling apart. You might have been working with Aurora real estate agents for years and suddenly find yourself without a job or could be dealing with some major changes in the stock market that have negatively affected how much you have in your retirement portfolio. When you're dealing with financial issues it's a good idea to know when it can help you to file for bankruptcy.

Filing for bankruptcy should not be your first choice of action once you realize that you cannot keep up with your debts. You might think that lenders are looking for signs to get out of a class action lawsuit repayment and that they are not very keen on helping people out when they are in trouble. But, the truth is that lending companies do not benefit from you filing for bankruptcy and are usually willing to work with you on a new plan to pay back what you owe. Talk to them about renegotiating before you consider this more drastic step. You might find that being honest is a much simpler solution than needing to hire class action lawyers or filing for bankruptcy.

If this doesn't work then you should look to see if your debts are currently adding up to more than your assets are currently worth. In order to do this, you need to know exactly how much you have in both categories. You should have everything from your home to your contemporary canvas art appraised and will need to look up exactly how much you owe to any different companies where you have outstanding debt. This could be a lengthy process but getting these answers will be the only way of knowing if filing for bankruptcy is really the best course of action.

Make sure that you're prepared for the consequences of filing for bankruptcy. One of the major differences is that you will not be able to borrow money in any way. There are ways to file and still get to keep your unit in condos downtown Toronto or home in New York, but you will not be able to get a new mortgage or even have a credit card for some time. Your credit will also be shot for up to ten years after you file. If these are circumstances that you can live with then filing for bankruptcy might be the best option for you.

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