Personal bankruptcy
Clear all your debts and have a fresh start!
If you’re overwhelmed by debt and no other solution can resolve your situation, bankruptcy could allow you to start over. You can have peace of mind and enjoy simple pleasures again.
When should you consider personal bankruptcy?
Personal bankruptcy may be considered in the following situations:
- You have multiple short-term or long-term debts that you’re unable to repay;
- You’re unable to make the minimum payments;
- You’re receiving calls or collection notices from creditors or government agencies;
- You’re using your credit card to pay current bills or repay other debts;
- You lost your job and no longer have income.
What is the process for a personal bankruptcy?
Personal bankruptcy includes the following steps:
- Evaluation of the situation : Together with your counsellor, we’ll explore which solution is best suited to your needs. Indeed, bankruptcy is not the only solution to debt problems. A consumer proposal, debt consolidation or voluntary deposit may be better choices.
- Document signing : Your counsellor confirmed that bankruptcy is the best choice for you. Don’t think of it as a failure. On the contrary, it’ll allow you to get back on track. You must sign a few documents to get the ball rolling.
- Official bankruptcy filing : Our Bankruptcy Trustee submits your file to the Office of the Superintendent of Bankruptcy. Harassment from your creditors will end immediately after this step. You can finally relax!
- Two follow-up meetings : Your counsellor will share advice for adopting sound financial habits. This will save you from ending up in a difficult situation again. They’ll explain how to draw up a budget and use credit properly, for example.
- Discharge from your debt : As early as nine months (if this is your first bankruptcy) or 21 months (if your income exceeds a specific threshold), you’ll be discharged from your debts. You can begin to plan again and look to the future with optimism.
What are the advantages of declaring bankruptcy?
Personal bankruptcy has several advantages:
- It quickly releases you from your debts (between 9 and 21 months based on your income and the type of bankruptcy filed). The process is faster than debt consolidation or a consumer proposal which can take up to 5 years;
- It puts an immediate end to harassment by your creditors;
- Some of your assets such as furniture, RRSPs, pension funds and work tools are protected;
- In many cases, you can keep your home and car;
- It protects you from lawsuits and wage garnishments;
- It protects you from having your services (telephone, electricity, gas, etc.) cut off.
How can a Licensed Insolvency Trustee help you deal with bankruptcy?
As of your first meeting, your Licensed Insolvency Trustee will take care of everything and ensure a smooth and legally compliant process. They’ll become the sole point of contact with your creditors. Furthermore, they’ll share advice at each step to help you start over and avoid falling into debt again.
Others solutions that can help
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Consumer proposal
This is an excellent alternative to bankruptcy. We negotiate an agreement with your creditors to reduce your debts and/or spread out your repayments over a longer period. Our Licensed Insolvency Trustees will take care of everything.
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Debt consolidation
Consolidate all your debts into a single payment to simplify your financial management and protect your credit score.
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Voluntary deposit
You commit to paying a percentage of your income to the court every month until you’ve paid off all your debts. This is an excellent solution for avoiding bankruptcy!
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Renouncing an involvent estate
If a loved one passes away and leaves more debts than assets, you have the option to refuse the inheritance and avoid assuming their debts. Our experts can guide you through this process.