In Canada, individuals, associations and business entities can file for bankruptcies for handling severe financial circumstances.
Under the Bankruptcy and Insolvency Act, Canada the debtor is required to surrender most of their assets while they are protected and allowed to keep some necessities with them for survival.
Filing for bankruptcy under the Bankruptcy and Insolvency Act, Canada is beneficial on the part of the debtor.
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It provides the debtor with a chance to offload the financial burden in a structured manner and manage their financial situation according to the available assets and liquidity.
Under the Bankruptcy and Insolvency Act, the debtor can either file for bankruptcy or a consumer proposal.
Filing Bankruptcy in Toronto
Once a bankruptcy is filed in Toronto, it takes a minimum of 9 months for the procedure to complete and a licensed insolvency trustee is aligned with the debtor who helps them manage the repayment procedure as per the laid down sections of the act.
In bankruptcy, a majority of people require systematic analysis of their financial situation.
As the government allows the debtor to repay the amount, some bankruptcies may require expert analysis, especially, wherein financial complexities due to ownership of large financial assets are involved.
In Toronto and across the country, bankruptcy covers the debts which are unsecured; for instance, one can file bankruptcy involving loan repayments, income taxes and overdrafts.
On the other hand, car loans or mortgage loans, alimony payments and student loans (taken in less than 7 years) are considered as secured debt and hence do not fall under legally filed bankruptcies.
Under the Bankruptcy and Insolvency Act, certain exemptions are also allowed to the debtor, which helps them keep necessary amenities, post-filing for bankruptcy.
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