For many individuals the only option available to them to solve their financial troubles is through filing for personal bankruptcy. For some, filing for personal bankruptcy carries a stigma of embarrassment and failure, but the truth is that many situations became the result of unfortunate circumstances such as illness, the loss of employment, marital breakdown, or the passing of a loved one. Bankruptcy laws in Canada were established to allow the honest but unfortunate debtor a fresh start, and a chance to rebuild their personal finances.
Bankruptcy is a legal process under the Bankruptcy and Insolvency Act, where all your assets are assigned to the Trustee who will then liquidate them and distribute the proceeds amongst your creditors. Each province has its own list of assets which are exempt from seizure by the Trustee generally these include your personal belongings, household furnishings, tools of your trade, and a motor vehicle.
After you declare bankruptcy, you are no longer required to pay unsecured creditors. The Trustee will deal directly with your creditors including stopping any legal actions they may have started against you, including wage garnishments. While in bankruptcy you will be required to perform the duties of a bankrupt, which the Trustee will explain to you. As a first time bankrupt you may be eligible to be discharged and debt free as early as 9 months from the date of bankruptcy.
If we determine together that the only solution available to you is to declare bankruptcy, our Trustees in Bankruptcy and administrators can assist you in your formal filing.