Bankruptcy allows you to release your debts, stop collection calls,
end wage garnishments, and get on with your life.
Learn the basics about how bankruptcy works in Canada with this guide. Find out about the rules and process of how to file or apply for bankruptcy in order to eventually be discharged.
The bankruptcy process in Canada (declaring bankruptcy) is a big step and not one to take lightly. Once you assign yourself into bankruptcy, it is extremely difficult to change your mind.
Do yourself a favour and make sure that you have explored alternatives to bankruptcy before you decide to go bankrupt. No matter how difficult your money problems may seem today, something this important with long term consequences that you might not be fully aware of, is worth considering carefully.
Step 1: Find out if you need
to declare bankruptcy
Step 2: File paperwork with trustee
Step 3: Your assets not exempt will be sold
Steps 4 - 6: Creditors find out
Step 7: Attend bankruptcy
Steps 8 - 9: Reporting to OSB
& ending discharge process
Step 10: After bankruptcy discharge
• Should I file for bankruptcy?
• How do I claim or declare bankruptcy?
• What is bankruptcy discharge?
• When does a bankruptcy end?
Part of the bankruptcy process includes your trustee filing your income tax return for you. If you did not file a tax return for the year prior to declaring bankruptcy, your trustee will do that first. Then they will file a return for the period of January 1 until the day prior to you filing for bankruptcy. Any refunds or tax credits from the government will be sent to your trustee and form a part of your estate.
• Keep your car, home and RRSPs*
• Stop harassing creditor calls immediately
• Get the largest debt reduction that is fair
Upon filing a bankruptcy, a stay of proceedings is automatic. This means your unsecured creditors have no legal recourse against you. Your unsecured creditors cannot commence or continue with any legal proceeding, wage garnishment or contact you for payment.
If you are having trouble repaying your debts, you are likely looking for options that can help you. One option that many people consider is an unsecured debt consolidation loan. This is a situation where you take out a new loan with the aim to consolidate all debt into one payment. Not only does this simplify the bill paying process, but it can also save you money.
If you feel that your financial situation is getting worse and that debt relief is more remote than ever, there are a number of preliminary steps you can take to resolve your debt - without participating in a formal legal process (such as a Consumer Proposal or Bankruptcy). Get Help with your Money Problems The first step is to sit down and examine your household budget.
For more information please
contact us at 807-285-2525