Help With Personal Bankruptcy
Living in Canada today isn’t cheap.
And while we all do our best to budget, save and live within our means, sometimes we have no choice but to lean on lines of credit to get us through tough times and pay unforeseen expenses.
But over time, these debts can add up and slowly place a stranglehold on your household income.
As interest starts to accrue across multiple credit cards, loans and store cards, you may find that you’re paying out more and more every year while paying down worryingly little of your principal.
You may feel as though there’s no way out.
And as you slowly become less and less able to repay your debts, you reach what is known as insolvency.
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This means that you are unable to realistically pay off your debts as they currently stand.
If your creditors do not agree to a Debt Management Plan and your credit doesn’t quality you for a Debt Consolidation Loan, you may assume that you have nowhere to turn but Bankruptcy.
However, since 1999 we’ve been helping Canadians from all walks to life to see that a Personal Bankruptcy isn’t a defeat, nor is it the end.
In fact, it can be the beginning.
The beginning of a new financial life that’s free of debt. If you’re ready to start over with a clean slate, read on…
What is Bankruptcy?
There are still many myths and misconceptions surrounding Personal Bankruptcy in Canada.
In this post we’ll try to set the record straight and help you to better understand the process so that you can make an informed decision.
Bankruptcy is an official declaration of insolvency.
It means that you legally declare that you are unable to pay your debts when they are due and that you do not have enough equity in your assets to cover the debts.
Please note that this doesn’t necessarily mean that you will lose assets like your home if you declare bankruptcy.
As a result of declaring bankruptcy, you can expect the following outcomes:
- You are legally released from your debt obligations;
- Your creditors can no longer pursue you for payment;
- Non-exempt assets will be settled.
You can find out more about the process of filing for bankruptcy in this post.
A bankruptcy will remain on your credit record for 6 years if it is your first bankruptcy and 15 years for subsequent bankruptcies.
When you file for bankruptcy, you will be expected to meet certain duties to ensure that your debts are automatically discharged.
If you are unable to meet your obligations within the first 9 months of filing for bankruptcy, you may need to go to Bankruptcy Court.
A Licensed Insolvency Trustee will help you to get your affairs in order, but ultimately the responsibility is yours.
Your duties include:
- Providing all the necessary information to file your tax returns (both pre-bankruptcy and post-bankruptcy);
- Submitting your monthly income and expense reports;
- Making good on all necessary payments to the state;
- Attending two mandatory Credit Counseling sessions;
- Reporting all of your assets to the Trustee including providing any documentation requested to help to value them;
- Keeping your contact information up to date;
- Staying in touch with your Trustee.
There is a stigma around Bankruptcy which may deter people who would benefit from filing.
This is unfortunate, as Bankruptcy has numerous benefits which can help those who file to lead a life that’s free of debt.
Bankruptcy puts an end to threatening calls and emails from creditors.
It stops creditors from being able to freeze your bank accounts or garnish your salary.
What’s more, the mandatory Credit Counselling sessions that are part of the process can help you to identify the behaviours that allowed your debt to get out of control and encourage you to adopt financial management strategies to prevent it from happening again.
If your debts have spiralled out of control and you need to escape your debts and start again, our Personal Bankruptcy services can help you to get the fresh start you deserve.
It can even help with things like debt to the CRA or Student Debts (as long as they are 7 years old or more), where a standard Debt Management Plan cannot be implemented.
It’s important to note that there are some debts
Why you need a Licensed Insolvency Trustee
It’s important to note that you cannot file for bankruptcy on your own.
It is a highly complicated legal process which may vary greatly from one case to the next.
You need the aid of a Licensed Insolvency Trustee to help guide you through the application process and ensure that you meet your obligations to stay out of court.
They can file and forward the Trustee’s Report and other paperwork to your creditors and notify them of your bankruptcy status.
They can even attend meetings and hearings with you if required.
Click Here to find a Licensed Insolvency Trustee near you.
We can help you get the fresh start you deserve
Hopefully this post has demonstrated that bankruptcy need not be the end for you.
There are a great many successful, wealthy and influential people who have been declared bankrupt at last once.
Since we opened our doors back in 1999, we’ve helped over 200,000 Canadians from all walks of life to find the right solutions for their debt problems.
Click Here to take a look at some of our success stories.
Whether the best option for you is Bankruptcy, a Consumer Proposal or something else, we’ll advise you of all the available options and help you to get the support you need.
Call us today on (877)879-4770 to arrange a risk-free, zero-obligation and 100% confidential callback.
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Personal Bankruptcy in Canada
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