Are you considering filing for a Canada Bankruptcy? Canada Bankruptcy offers good people with bad debt a solution to their money problems. If you have more than $1,000 in debt and are insolvent, you can declare bankruptcy.
Insolvent simply means you can no longer afford to pay your monthly bills on time. If you owe $50,000 in debt and have $50,000 or more in liquid investments or in home equity, you are not insolvent because you could use those assets to pay off your debts.
The First Step
The first step you should take is to contact a bankruptcy trustee. Trustees are trained and certified to help you explore your options and the first initial consultation is free.
If bankruptcy is the best choice for your circumstances, the bankruptcy trustee will help you fill out the required forms and paperwork. Once completed, the trustee will then file your forms with the Office of Superintendent of Bankruptcy and you will be formally declared in bankruptcy.
The Next Steps
After you are formally in Canada bankruptcy, any wage garnishments will stop, creditor lawsuits will end and you will no longer make payments directly to your unsecured creditors. Any harassing phone calls from collectors will end.
Two Credit Counselling Sessions
Another requirement of Canada Bankruptcy is to attend two financial counselling sessions. These sessions will help you to review what led to your bankruptcy, and how to manage your finances in the future.
You may be required to make surplus income payments. Surplus income is defined as earnings that exceed the amount of income a family needs to maintain a reasonable standard of living and the amount is set by the OSB annually. It is determined by the size of your family, so the bigger your family is, the more you are allowed to keep. The more money you make, the more you must contribute.
The purpose of filing for bankruptcy and going through the bankruptcy process is to receive your bankruptcy discharge. Your discharge declares that your debt has been legally removed, and you will no longer be responsible for the debts you had shared in your bankruptcy application. Your bankruptcy trustee can help you determine how long it takes from filing to discharge. This depends on your surplus income and whether or not this is your second or third Canada bankruptcy.
A Fresh Start
Once you have been discharged from bankruptcy, your fresh start can begin. Contact a trustee today to explore your options. Bankruptcy is one of them, but you might qualify for several other options as well.
Other Canada Bankruptcy Resources