Bankruptcy

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BANKRUPTCY
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What is Bankruptcy?

• Bankruptcy is a court proceeding in which a
  judgeand court trustee examine the assets and
  liabilitiesof individuals and businesses who
  cant pay theirbills and decide whether to
  discharge those debtsso they are no longer
  legally required to pay them.

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Things to know about Bankruptcy

• Bankruptcy is not an in and out process. The
  most common bankruptcy chapter for individually
  usually last for four to six months.
• Bankruptcy opens our finances to public scrunity.
• Honesty and complete disclosure is required.
• Bankruptcy forms are complicated and require
  great attention.
• The bankruptcy discharge is personal.
• Filing for bankruptcy is not cheap.
• Filing bankruptcy can affect your credit for
  years.

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Do we need a trustee to file bankruptcy in Canada?

• Yes. Because in Canada bankruptcy is a legal
  process, you must utilize the services of a
  licensed insolvency and bankruptcy trustee in
  Toronto, in case if you are living in Toronto.
  Once you meet with your trustee, they will help
  you determine the best course of action. In some
  cases, you may qualify for a consumer proposal
  instead. Your trustee will help guide you
  through the process and make sure that all of
  your questions and concerns are addressed.

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Who is eligible to file a Bankruptcy?

• One who owe at least 1,000 and are struggling
  to maintain your monthly expenses could be
  eligible to file a bankruptcy.It is wise to
  speak with a bankruptcy trustee who will help
  you learn the eligibility requirements for
  declaring bankruptcy.

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Duties while filing a bankruptcy?

• Attend two mandatory counselling sessions within
  the required time frame.
• Provide monthly income and expense statements.
• Provide income tax information for the year in
  which you filed the bankruptcy.
• Keep your Licensed Insolvency Trustee informed
  of our current address and other contact
  information.

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How long will be the bankruptcy process?

• The length of time is determined based on whether
  this is your first or second bankruptcy and
  whether you are required to make monthly surplus
  income payments.The surplus income amount is an
  amount paid monthly into a bankruptcy and is
  based upon our income and family situation.

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How will declaring bankruptcy help us?

• Once you file for bankruptcy all interest
  charges,collection calls,wage garnishments and
  any legal action will stop.Since a Licensed
  Insolvency Trustee will act on your behalf, you
  do not need to contact or deal with your
  unsecured creditors directly.

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Difference between Consumer Proposal and
Bankruptcy
Bankruptcy Consumer Proposal
Bankruptcy involves you surrendering your assets to eliminate your debt obligations A consumer proposal is a formal agreement with our creditors on the terms of repayment of your debts
With bankruptcy, monthly payments may vary depending on your income. A consumer proposal requires a regular payments of fixed amount agreed upon you and your creditors.
The length of time is determined based on whether this is your first or second bankruptcy A consumer proposal is completed once the client has made the required payments for the required period of time.
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Conclusion

• The major consequences primarily the reduction
  in your credit score, are definitely the points
  to consider before filing bankruptcy.It would be
  always better to have a meeting with a Licensed
  Insolvency Trustee to review your monthly income
  and expense, your debt load and your assets.

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