Filing for Bankruptcy
Bankruptcy is an option for those who can no longer meet their financial obligations. While bankruptcy is never an easy process to consider, it still offers a number of benefits, including debt relief and regaining control of your financial future. Here is what you need to know and what to expect during the bankruptcy process.
Filing for Bankruptcy & Beginning the Process
Canadian law requires you to have a licensed insolvency trustee to help you initiate and complete your bankruptcy. As a licensed insolvency trustee we will first help you review whether you’re eligible for bankruptcy, which will include factors such as whether you owe at least $1,000 and aren’t currently in bankruptcy. While individuals can file for bankruptcy, it’s also possible for businesses and partnerships to file as well.
How Filing for Bankruptcy Can Help You
One of the primary benefits of filing bankruptcy is that most creditors are no longer legally able to pursue you to collect on their accounts. Creditors will also have to cease lawsuits and garnishing your wages. Your trustee will also help ensure collection calls stop.
Filing for Bankruptcy With The Help of a Bankruptcy Trustee
As a licensed insolvency trustee we will first look at the specifics of your case, which will involve a review of your income, assets, expenses, how much debt you owe to creditors, and other relevant information. Everyone’s case is different, and as a licensed insolvency will need information necessary to complete what is called a Statement of Affairs and other paperwork that is required for the Office of the Superintendent of Bankruptcy (OSB).
While filing for bankruptcy can be complicated, as a licensed insolvency trustee we are trained to not only help you file the appropriate paperwork, but to also simplify the process for you as much as possible. That means providing you with an understanding of what to expect through each step of a bankruptcy procedure.
What’s Required From You
In order to move forward with the bankruptcy, you will have to attend an interview with an OSB representative. You will also need to attend two financial counselling sessions and report your income and monthly expenses us as your licensed insolvency trustee.
Selling Your Assets
Licensed Insolvency Trustees are responsible for selling assets that are not exempt from seizure and distributing the proceeds to your creditors according to a scheme of distribution set out in the Bankruptcy and Insolvency Act. This is done to meet at least some of your financial obligations under the terms of the bankruptcy. As your licensed insolvency trustee we will help explain which assets are exempt from seizure based on federal and provincial law.
Surplus Income Payments
You may also need to make surplus income payments to the licensed insolvency during the bankruptcy process. This money will go to your creditor or creditors. However, this surplus is usually required from you only if your earning income exceeds a certain “reasonable standard of living” threshold, which is set by the government each year. As a licensed insolvency will help you calculate this surplus income payment if you’re required to pay it.
How Long The Bankruptcy Process Takes
For most people who file bankruptcy, the process should take 9 to 21 months from the point you file for Assignment in Bankruptcy. Factors such as how much surplus income you’re paying will play a role in how you must wait until your discharge. For those who have filed bankruptcy before, the process will take 24 to 36 months.
If you’ve decided or are considering filing for bankruptcy may be the right path, it’s time to call Dana MacRae at 1-800-665-9965 for a free, no obligation, and confidential consultation.