MNP Limited, 519-800-2420
Suite 600 – 73 Water Street N, Cambridge Place, Cambridge, ON N1R 7L6
Personal bankruptcy is a legal right for individuals who are unable to repay debts to their creditors.
To be eligible for personal bankruptcy in Canada, you must file through a Cambridge, ON Licensed Insolvency Trustee or LIT.
It is the Licensed Insolvency Trustee’s responsibility to ensure that the laws and regulations surrounding personal bankruptcy are applied fairly to both the creditors and debtor.
MNP Limited Cambridge, ON Licensed Insolvency Trustee
What are the bankruptcy laws in Cambridge?
Federal bankruptcy laws stated are stated in the Bankruptcy & Insolvency Act.
Filing for bankruptcy enables individuals to make a fresh, financial start.
When your Cambridge, ON Licensed Insolvency Trustee files for bankruptcy on your behalf, you will gain an immediate defense from your creditor’s actions.
They will stop calling you and making threats of legal action.
Wage garnishing will also stop.
Are you eligible to file for bankruptcy?
To file for bankruptcy with a Cambridge, ON Licensed Insolvency Trustee, you must meet the following criteria:
– have unsecured debt of at least $1,000
– owe more debts than the total value of all your assets,
– are unable to pay back your debts
– you must property, do business, or reside in Canada
What assets can you keep in bankruptcy?
When you file for personal bankruptcy in Ontario, many of your personal belongings are exempted from seizure.
For instance, it’s possible to hold on to your house, your car, and even your RRSPs when filing for bankruptcy.
Your Cambridge, ON Licensed Insolvency Trustee will discuss this with you.
What debts will be discharged by bankruptcy?
Bankruptcy eliminates many types of unsecured debts such as bank loans, credit card debt, payday loans, tax debts, and lines of credit.
If you’ve been out of school for more than seven years, then student loans can be discharged as well.
A few debts such as court fines, and child or spousal support payments are not exempt.
How long is the bankruptcy process?
The duration of bankruptcy will depend on two things: whether you’ve filed before and your income category.
For first time filers with no additional income, they can start a debt-free life in 9 months.
If you do have extra income, then your bankruptcy will extend up to 21 months.
If you file for bankruptcy for the second or third time, then the period will be longer.
What other requirements are there to gain a discharge from bankruptcy?
Apart from providing necessary documentation, you will have to participate in two mandatory credit counseling sessions.
These will help you with money management and rebuilding credit.
To learn more about personal bankruptcy, speak to a Cambridge, ON Licensed Insolvency Trustee today.