5 Things to Know About Filing Bankruptcy in Ontario

5 Things to Know About Filing Bankruptcy in Ontario

Ontario Bankruptcy Information

The journey to financial freedom can often be mired by unexpected financial storms. In Ontario, individuals grappling with piling debts often ponder over the option of filing for bankruptcy. If you find yourself in such a predicament, here are 5 pivotal factors you should consider before filing for bankruptcy in Ontario.

1. Bankruptcy: The Final Solution

Filing for bankruptcy should not be your first line of defense against financial distress. It should instead be the last option after all other feasible solutions have been explored and found wanting. Debt consolidation, personalized debt management programs or filing a consumer proposal are alternatives you should consider before resorting to bankruptcy in Ontario. Only when these solutions don’t quite cut it for your unique financial situation should you then contemplate filing for bankruptcy.

2. Navigating Bankruptcy: You Can’t Do It Alone

Navigating the complexities of bankruptcy requires the expertise of a licensed professional. When you decide to file for bankruptcy in Ontario, you’ll need to engage a trustee. These professionals are licensed by the Canadian government and are the only individuals who can legally assist you in filing for bankruptcy in Ontario.

3. Asset Inventory and Assignment: A Necessary Step

Filing for bankruptcy in Ontario requires that you inventory and assign your assets through an Assignment and a Statement of Affairs. The former indicates your intent to relinquish your property to the trustee while the latter provides a detailed account of your assets, liabilities, income, and expenses. After completing these legal forms, your trustee will ensure they are appropriately filed. Notably, Ontario law allows you to retain basic possessions, including a basic car. Consult with your trustee to understand if filing for bankruptcy will result in a loss of any assets.

4. Bankruptcy Duties: Mandatory Responsibilities

As a bankrupt individual, there are specific duties you are required to perform. You may need to attend creditors’ meetings (though this is rare), report your monthly household income and living expenses to your trustee, and make surplus income payments during your bankruptcy if required. Additionally, you’ll have to attend two credit counseling sessions about personal budgeting and money management. Your trustee will outline all these responsibilities before you file.

5. Discharge Duration: It Depends

The timeframe until you are released from your debt via bankruptcy depends on several factors. For first time bankrupts, an automatic discharge after 9 months is standard, unless you have surplus income, fail to perform the legal duties required during bankruptcy, or if your creditors object. Your trustee can provide an estimate of the duration of your bankruptcy before you file. However, the actual period will depend on your specific circumstances.

Before filing for bankruptcy in Ontario, it’s crucial to fully understand the process. Bankruptcy might be the appropriate solution for you if you want to stop wage garnishments, halt collection calls, resolve your debt issues, and pave the way for a fresh financial start.

If you believe filing for bankruptcy in Ontario is the right move for you, consider reaching out to Bankruptcy Canada. We can assist you in eliminating your debt. Let’s begin the journey to financial freedom.

In conclusion, filing for bankruptcy is a significant decision that shouldn’t be taken lightly. It’s crucial to explore all available financial relief options, understand the process, and seek professional help to navigate this complex journey. Ultimately, the goal is to regain financial stability and start afresh.

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