Filing Bankruptcy in Manitoba, MB
How to Claim Bankruptcy in Manitoba – Manitoba Bankruptcy Laws
Under the Manitoba bankruptcy laws, trustees regulated by the government and are subjected to strict ethical standards.
When you contact one of the bankruptcy trustees listed here you can arrange a no cost obligation meeting to discuss your finances and your debts.
Your bankruptcy trustee can also set up for you a payment plan if you require to pay for their services (a bankruptcy will cost $1,800 over 9 months for a simple, first time bankruptcy.)
Insolvency professionals can also help you with determining whether you should file bankruptcy or make a consumer proposal.
Bankruptcy laws are written to allow individuals who are buried with debt to receive a discharge from their debts in a fair, honest and legal manner.
If you are thinking about filing for bankruptcy you have come to the right place.
You can find all the information you need about bankruptcy on our website, and when you are ready to contact a bankruptcy trustee you can find a list of professional trustees on our site.
When you are ready to learn more about bankruptcy, one of our trustees will provide you with a free bankruptcy evaluation consultation.
Bankruptcy trustees can also help you with making a consumer proposal to your creditors.
A consumer proposal will involve repaying a portion of your debts (20 to 30%) over a three to five year period.
If you file for bankruptcy you can receive a discharge of your eligible debts within 9 months.
A Manitoba bankruptcy filing can provide you with a quick and simple “fresh start.”
You can read our FAQ page to get the answers to some of the more common bankruptcy questions, but if you still have bankruptcy questions after viewing our site you can schedule a free appointment with a licensed trustee in your city.
Many people are worried about getting credit after bankruptcy and getting a credit card again, however once you have been discharged from bankruptcy you can begin rebuilding your credit, including getting a credit card.
People are also worried about losing their belongings and property when they file bankruptcy because they have heard a misconception.
To see what assets you can keep when filing bankruptcy visit our Manitoba bankruptcy exemptions page.
Personal Bankruptcy Manitoba
Bankruptcy in Manitoba is a legal process that is intended for people who are unable to pay off their debt.
Any Manitoba resident who owes at least $1,000 in unsecured debt and are insolvent can file Manitoba bankruptcy.
In order to be insolvent a person must owe at least $1,000, be unable to pay their debts as they become due, and have more debts than realizable assets.
Most debtors who file bankruptcy owe much more than $1,000, and therefore bankruptcy gives a fresh financial start.
In order to file bankruptcy in Manitoba a person must go through a licensed insolvency trustee (formerly a bankruptcy trustee) as only a Trustee can file bankruptcy with the Office of the Superintendent of Bankruptcy.
When you file bankruptcy you must turn over your non-exempt property, although most debtors filing bankruptcy in Manitoba are able to keep all of their assets, as the bankruptcy exemptions protects certain property from seizure.
According to Manitoba bankruptcy law you can keep your car and home if you meet certain criteria.
Bankruptcy in Manitoba is a complex legal process, so our debt relief experts in Manitoba offer a free consultation meeting to discuss your options and possible bankruptcy alternatives that could fit your money problems.
Our Licensed Insolvency Trustees will help you understand the bankruptcy process, as well as the alternatives to bankruptcy such as a consumer proposal.
A proposal is often the #1 alternative to bankruptcy in Manitoba.
Your Trustee will help you examine your financial situation and help you make a decision on the best option for you to get out of debt.
Should I File Bankruptcy in Manitoba?
When you schedule a confidential evaluation meeting with a Manitoba bankruptcy expert, they will help you examine whether any of the bankruptcy alternatives that are available to Manitoba debtors could help you get out of debt.
All Manitoba bankruptcy experts (Licensed Insolvency Trustees) must follow a strict code of professional ethics.
This means that the Trustee will always give you their best advice, even if that means the Trustee tells you how to avoid using their services but still get out of debt.
The Trustee will help you determine what is the best choice for getting out of debt.
What Happens During the Manitoba Bankruptcy Process?
In Manitoba, when you file bankruptcy you will be entering into a government regulated legal process.
Filing Manitoba bankruptcy means you will surrender your assets to the Trustee and in exchange you will have your unsecured debts eliminated.
However, you can keep your assets that are protected by the Manitoba bankruptcy exemptions.
In most cases, a debtor filing bankruptcy in Manitoba will be able to keep all of their assets when going bankrupt.
If a debtor has many assets they would lose in bankruptcy, your Trustee will help you explore bankruptcy alternatives that will allow you to keep your assets and get debt relief.
Bankruptcy is a difficult decision, but it often gives the best chance for a fast, easy and affordable fresh financial start.
You can even get credit immediately following your bankruptcy discharge, and you can be approved for a mortgage in as little as 2 years after your bankruptcy discharge.
What is the Cost of Filing Bankruptcy in Manitoba?
The cost of filing bankruptcy is determined by your assets, income and the size of your family.
In the most simple cases (a debtor filing bankruptcy for the first time with low income and no assets) a Manitoba bankruptcy will cost $200 a month for 9 months or a total of $1,800.
Is Manitoba Bankruptcy Right for Me?
Bankruptcy can be the right solution for many Manitoba residents facing money problems, although there are alternatives to bankruptcy in Manitoba that should be explored.
A Trustee will tell you that bankruptcy is a last resort, although if the trustee recommends that filing bankruptcy is right for you, you can be confident that bankruptcy is right for you, due to the Trustee’s professional ethics that they must follow at all times.
Bankruptcy in Manitoba might be right for you if your debts are more than the value of all of your assets.
The bankruptcy process usually lasts for 9 months, although it could be extended under certain circumstances.
If you have surplus income or have been bankrupt before, then your bankruptcy will be extended and you will have to pay more.
Often, bankruptcy is the cheapest and easiest way to get out of debt and receive a fresh start.
Bankruptcy is not the only solution and a Trustee can help you explore all of your options.
Your Trustee will explain all of your options and will help you feel confident that you are making the right decision.
What Are the Benefits of Filing Bankruptcy?
- Filing bankruptcy will stop all collection calls, wage garnishments and lawsuits against you (this only applies to unsecured creditors);
- Your creditors cannot take all of your assets, as certain assets are protected by the bankruptcy exemptions (such as $4,500 in personal furnishings, $7,500 in Tools of the Trade and $2,500 in equity in a personal residence, along with other exemptions);
- You will receive financial counselling, which gives you the knowledge and information to help you stay out of debt and manage your finances in a responsible manner once you are out of bankruptcy;
- Bankruptcy gives you a fresh financial start;
- All of your unsecured debts (with a few exceptions such as child support payments and spousal support payments and court ordered fines);
- Bankruptcy allows you to eliminate government debt such as income tax debt and student loan debt (if you have been out of school for at least 7 years when you file bankruptcy);
What are the Disadvantages of Bankruptcy?
- You could possible lose some of your assets (although if you were to lose significant assets, your Trustee will advise you to seek debt relief through a consumer proposal);
- Your credit will be negatively impacted (although if you are considering bankruptcy, your credit is likely already poor and bankruptcy can’t make it any worse);
- You cannot serve on the board of directors of an incorporated company;
- Bankruptcy will remain on your credit report for some years, although you can still rebuild a good credit score;
- A bankrupt must disclose that they are an undischarged bankrupt when attempting to borrow more than $1,000.
When is Bankruptcy Right For Me?
Considering bankruptcy is not an easy choice, especially when you are facing the stress of collection calls, threats of legal action and having your wages garnished.
Although bankruptcy stops all of this, and gives you a fresh financial start, it might not be the correct solution for you and your unique situation.
A LIT (Licensed Insolvency Trustee) will only discuss bankruptcy with you after exploring other debt relief solutions that might work for you.
After looking at all of your options, bankruptcy might turn out to be your best debt relief solution.
Bankruptcy is generally the right debt relief choice for debtors that have few assets and little or no equity in their home (if they own real property).
Only a Trustee can help you file bankruptcy.
Declaring bankruptcy will give you a fresh start – enquire today!