There are five main disadvantages of choosing bankruptcy.
- Various duties must be completed to earn your discharge from the bankruptcy process, if duties are not completed, a Court hearing is required and the Court will impose conditions on your discharge.
- It's required to report your income every month and if your income improves, your bankruptcy payments may increase.
- If you become entitled to a windfall (lottery, inheritance, etc.) while bankrupt, funds are payable to your Trustee.
- Creditors or the Superintendent of Bankruptcy can object to your discharge resulting in a Court hearing and the Court may impose conditions on your discharge
- It has the least favourable impact on your credit rating, and a lifelong declaration when making future credit applications.