4 Main Steps to Bankruptcy in Ontario
Filing for bankruptcy in Ontario could be the most appropriate option for you if you are having difficulty handling your debts.
When you are struggling to make your payments and may be finding it hard to pay other expenses too, bankruptcy offers you the option of discharging your unsecured debts.
It is not likely to be the first solution that you want to consider when you need to address your debts, but it can be the choice that works for you if you are unable to meet your obligations.
It comes with a number of duties that you must complete, and there is a process that you need to follow.
If you are thinking about bankruptcy, the following steps will help you to understand how you can get started.
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Educate Yourself About Bankruptcy
Before you go any further, you need to understand the basics of bankruptcy, how it works, and what it can do for you.
If you owe more than $1,000 and you are considered insolvent, you are eligible to file bankruptcy in Ontario.
To be considered insolvent, your debts need to be larger than the value of your non-exempt assets, savings, and investments, and you need to be unable to pay your debts when they are due.
A Licensed Insolvency Trustee works out whether you meet the requirements for bankruptcy and discusses your options with you.
Bankruptcy allows you to have most unsecured debts discharged, with some exceptions, such as some student loans and legal fines.
You may be able to keep some assets, but you will be expected to sell many of them to pay your creditors.
These include your home, car, and RRSP and RESP statements.
Know Where to Get the Best Advice
Getting accurate advice about bankruptcy is important if you are considering it as an option to help you with debt relief.
There are many places where you can find the information that you need, but some resources might not be as trustworthy as you need them to be.
You can find useful sites like Bankruptcy Canada that provide articles and information, as well as free consultations with trustees.
Bankruptcy Canada can help you to find a trustee who will provide you with the advice and support that you need to file bankruptcy.
They will also help you to check that bankruptcy is the right choice for you.
Consider the Alternatives to Bankruptcy
Before you file bankruptcy, it’s important to ensure you have checked and understood what other debt management options are available to you.
Bankruptcy should be a last resort, and it’s important to take a look at what other possibilities there are for debt relief.
A consumer proposal is one option that you might want to consider.
It allows you to keep your assets and to develop a plan to pay back a percentage of your debts to creditors.
Filing a consumer proposal also requires the assistance of a Licensed Insolvency Trustee, who will act as the administrator for your file.
Like bankruptcy, it comes with certain duties that you need to fulfill.
Other options are available to you too, including a debt management program, debt consolidation, budgeting, and other methods that will help to make your debts easier to manage.
A trustee can explain which options are available to you.
Contact a Licensed Insolvency Trustee
If you want to be sure that bankruptcy is right for you, you should speak to a professional who can support you.
A Licensed Insolvency Trustee has the training, knowledge and experience to ensure you are aware of all of your options.
They will go through your finances with you and explain which steps you could take next.
A trustee is needed to file bankruptcy, as well as file a consumer proposal, so you will need to contact one if you have decided that you want to explore the option of bankruptcy.
You can easily find a local trustee online, and they will help you to understand and complete the bankruptcy process if it’s the right option for you.
For help with bankruptcy in Ontario, search for a local Licensed Insolvency Trustee on the Bankruptcy Canada website.
A free consultation with a trustee will get you started with the bankruptcy process, and also allow you to take a look at other options for dealing with your debts.
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