Understanding the ins and outs of filing for bankruptcy with no assets can be a daunting task. This comprehensive guide aims to shed some light on the topic, providing valuable information for those considering such a step in Canada.
Can I Declare Bankruptcy Without Any Assets?
Yes, it is possible to file for bankruptcy in Ontario even if you don’t have any assets. As long as you meet the qualifications for bankruptcy, a bankruptcy trustee can file on your behalf.
In situations where there are no assets or equity to distribute among unsecured creditors, they are still required to write off all of their outstanding debt once the bankruptcy is successfully completed.
Working with a Licensed Insolvency Trustee
In Ontario, only Licensed Insolvency Trustees can file and administer bankruptcies. These professionals, such as those at David Sklar & Associates, are regulated by the federal and Ontario governments, ensuring that the process is fair to all parties involved.
Surplus Income and Bankruptcy
Surplus income plays a significant role in bankruptcy proceedings. This is essentially your total family income, minus allowable deductions such as medication and child support, in comparison to the number of people in your family.
Your Licensed Insolvency Trustee will explain the concept of surplus income in detail. If surplus income is determined, you may be required to pay 50% of the surplus into your estate for distribution to your unsecured creditors.
Release From Unsecured Debts at End of Bankruptcy
At the end of your bankruptcy period, if you have met all terms of your bankruptcy, you will be released from the unsecured debts included in your bankruptcy. This includes submitting monthly reports, attending credit counselling sessions, and making required monthly payments.
What Debts are not Included in Bankruptcy?
Not all unsecured debts can be included in a bankruptcy. Obligations such as child support, alimony, court fines, and some student loans cannot be erased by bankruptcy. Your trustee will provide detailed information on what can and cannot be included in the bankruptcy.
Considering Bankruptcy in Ontario?
If you are struggling financially and seeking relief, consider reaching out to Bankruptcy Canada. We specialize in helping individuals navigate through their debt and choose the best options for their unique situation.
First Step Towards A Debt Free Life
Taking the first step towards a debt-free life begins with a consultation. By reviewing your financial situation in detail, professionals can discuss all of your options with you.
