As soon as a bankruptcy or consumer proposal is filed, all actions including collection calls and wage garnishments, by law, must stop.
Protection is also provided to bankrupts by the fact that
How bankruptcy works is also by eliminating most debts.
While going bankrupt will eliminate most of your debts, certain debts survive the bankruptcy:
- Court imposed fines;
- Money that you owe for items obtained through theft;
- Money gained through misrepresentation;
- Child support and alimony payment arrangements;
- Damages that were awarded by the court for sexual assault or intentional infliction of bodily harm;
- Student loans if going bankrupt occurs prior to or within 7 years after finishing the studies.
What you can keep:
Your province or Territory sets the equity in assets you can keep.
Remember that assets include a tax refund as at the date of bankruptcy and for the year of bankruptcy. Also included in assets are such things as inheritances, insurance settlements etc.
The cost and how long you will be in bankruptcy.
The cost and how long you will be in bankruptcy depends on:
- Your income and family situation;
- How much you earn;
- Whether you have been bankrupt before.
Our Calculator will tell you the cost and how long you will be in bankruptcy.
Overview of the Steps in a Bankruptcy
This article will give you a good overview of the steps in a bankruptcy.