How to File Bankruptcy
A Step by Step Guide to Declaring Bankruptcy in Canada & Getting Out of Debt
Acknowledge Your Debt SituationThe first step to declaring bankruptcy in Canada is to acknowledge that you are having a debt problem that you believe is to serious to work out on your own. Common signs of a serious money problem include:
- Your credit cards are at, or over, their limits;
- You are using one credit card to make the payment on other credit cards;
- You are using credit card cash advances to pay monthly bills;
- Collection calls demanding payment on your debt that you cannot make are becoming a nuisance;
- You have received a legal action notice.
Find a LIT (Licensed Insolvency Trustee) to Help You Understand Your Debt Relief RightsA Licensed Insolvency Trustee (LIT) is the only debt relief expert in Canada who is licensed to administer to a bankruptcy filing or a consumer proposal. If you want to declare bankruptcy in Canada or make a legally binding proposal with your creditors you must use the services of a LIT. The Trustee will help you understand the bankruptcy process, how you can reduce your debt by 70% with a consumer proposal, and other debt relief options. When you choose a Trustee to work with ensure that:
- You feel comfortable with the Trustee. Make sure you understand their answers to your questions;
- Your Trustee to responds to your concerns in a timely manner;
- You have access to your Trustee.