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Bankruptcy

Once you decide to become bankrupt the licensed insolvency trustee, formerly referred to simply as a bankruptcy trustee, completes the paperwork with you and files it with the federal government.

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Bankruptcy

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  1. BANKRUPTCY

  2. What is Bankruptcy? Bankruptcy is a court proceeding in which a judgeand court trustee examine the assets and liabilitiesof individuals and businesses who can’t pay theirbills and decide whether to discharge those debtsso they are no longer legally required to pay them.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. Difference between Consumer Proposal and Bankruptcy

  10. 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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