If I declare Bankruptcy in Edmonton, Will I Ever Be Able to Borrow Again?


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One of the biggest misconceptions about filing for bankruptcy in Edmonton, Alberta, or anywhere in Canada, is that personal bankruptcy will eliminate your ability to borrow money in the future. This simply isn't true.

The only restriction on borrowing money is that while you are in bankruptcy (i. e. prior to receiving a discharge) you are not allowed to borrow more than $500 without informing the lender that you are in the middle of a bankruptcy. Once you are discharged from bankruptcy this requirement is removed. Now let's talk logistics.

Is every lender required to loan you money?

Of course not. No lender is ever obligated to loan anyone money, but as we all know, money is lent every day and often the situations are much riskier than those if a newly discharged bankrupt. You have to remember that the decision to lend money is based on a number of things including your credit history, your income, the stability of your income, the assets you own, the debt you carry and how much money you have available after you have paid all you monthly living costs.

The only item that is negatively affected by filing a bankruptcy is your credit history. In fact, as a result of filing bankruptcy some of the items considered now appear more positive, as your debt load should be almost eliminated, resulting in significantly more cash flow each month. So ultimately, the end result of filing a bankruptcy is that you are in a much less risky position than if you had not filed a bankruptcy.

Does this mean getting a loan after bankruptcy will be easy?

No, but we find that with a little work it is much easier than expected. After being discharged from bankruptcy your challenge will be to demonstrate to the bank that:

a) you are not in a risky position; and

b) you have learned from the experience.

How you address these issues will depend largely on your personal situation, but it never hurts to start with a frank discussion of the challenge you face in rebuilding your credit and the reasons why you are in the situation you are. This will enable you to discuss the bankruptcy, the issues that led up to the bankruptcy, and what you have done to prevent these issues from causing you difficulties in the future.

For further information about bankruptcy in Edmonton or anywhere else in Canada I suggest you contact a licensed bankruptcy trustee. Remember, each situation is unique, and as a result each situation requires an individually tailored strategy. With the help of a trustee you will be to develop a plan that will allow you to deal with your existing debt, develop strategies to prevent future difficulties, eliminate the unnecessary stress and get your life back on track.

Barton Goth of Goth & Associates Inc. , trustees in bankruptcy based in Edmonton, Alberta, Canada works with individuals in financial difficulty to help them deal with their debt. Visit http://www.bankruptcy-edmonton.com for information about filing bankruptcy, and borrowing after your bankruptcy is over. Mr. Goth is also a frequent contributor to the Bankruptcy Canada Blog , Canada’s largest source of information about bankruptcy.


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