How do i file for bankruptcy in canada

When you are ready, you sign the papers and your bankruptcy starts. This means that unsecured creditors cannot begin or continue lawsuits, wage garnishees, or even contact you to request payment.

Within five days of the bankruptcy starting the trustee will send a copy of the bankruptcy paperwork to creditors, so they can file a claim. The trustee will file outstanding tax returns up to the date of bankruptcy. Any outstanding taxes or penalties owed CRA will be included. You will have certain obligations that you will have to fulfill including a monthly income statement and attending credit counselling sessions.

One of the common questions regarding how to claim bankruptcy in Canada involves the duties of the person filing the case. Yes, the goal is to discharge the debts that cannot realistically be managed, but during the case, the debtor is expected to:.

Once your bankruptcy is discharged your debts will be cancelled with minor exceptions. A note about your bankruptcy will remain on your credit report for a minimum of six years after the date of discharge. In most circumstances, your bankruptcy will be discharged in 9 months.

This means that for most people their debts are cancelled 9 months after filing for bankruptcy and they can start going through the process of rebuilding their credit.

Your trustee can help you here as well by providing effective strategies for getting your credit back on track and helping you manage your money.

Bankruptcy Canada understands your predicament and is committed to helping you resolve your debt issues. Our knowledgeable and highly experienced Licensed Insolvency Trustees will thoroughly evaluate your financial condition and recommend a solution that will best meet your needs. To consider your options and take the next step towards debt relief, contact us by submitting a short form and one of our Licensed Insolvency Trustees will get in touch with you within 24 hours.

Understand Your Debt Situation 2. Select a Licensed Trustee 3. Meet with Your Trustee. Filing Your Bankruptcy 4. Filing For Bankruptcy 5. What Happens Once You File. Filing Your Bankruptcy 6. What Happens After Bankruptcy? Are You Considering Filing for Bankruptcy? We Can Help! How to File for Bankruptcy There are many reasons why people find themselves at the point where they feel bankruptcy is their only option. Successfully filing for bankruptcy means that: Most unsecured debt will be eliminated.

For instance, certain types of debts will still remain; these include child support, penalties, court fines, and student loans issued in the last 7 years. Interest accumulation and payments will stop too. Collections will cease. So you can say good-bye to harassing calls and letters from creditors as well as lawsuits or any other type of legal claims for payment. Wages will not be garnished any longer. What happens if I declare bankruptcy? What happens when you claim bankruptcy?

In Canada, only a Licensed Insolvency Trustee can file the paperwork for bankruptcy. When you declare bankruptcy, you meet with a Trustee to discuss your situation. If bankruptcy seems the most beneficial course, the Trustee will prepare the paperwork to file for bankruptcy.

See our page: How to File Bankruptcy. Once the paperwork is signed, your Licensed Insolvency Trustee will electronically transmit your bankruptcy information to the Office of the Superintendent of Bankruptcy in Ottawa a division of the federal government. The Superintendent of Bankruptcy will inform the credit bureaus of your bankruptcy.

Within five days of the bankruptcy starting, your Trustee will send a copy of your bankruptcy paperwork to each of your creditors, so that they can file a claim with the Trustee. This means unsecured creditors can no longer contact you, and cannot begin or continue lawsuits or wage garnishees.

Secured creditors, such as mortgage companies, can still seize assets that you have given as security if you do not keep up your payments. Your Trustee will file your outstanding tax returns up to the date of bankruptcy. In some cases, the property can be surrendered to your creditor without you needing to sell it. However, this does not entail wiping your entire assets. There are properties that you can keep during the bankruptcy process which will take for up to 9 months. Most people who cant afford to pay more of their unsecured debt would find bankruptcy as the most efficient way to eliminate it.

Besides, financial counseling for bankrupt individuals aids to prepare a person to get back on track and efficiency manage finances. Furthermore, creditors and debt collectors will have to obey an automatic stay of proceedings. This order allows you to get paramount creditor protection.

On the contrary, bankruptcy can also cost you money. You will have to make bankruptcy payments according to your income and may be required for administrative fees.

Moreover, bankruptcy yields a significant impact on your credit rating. For BC residents, this remains for 6 years and will be extended for 14 years for the second time. Besides, bankruptcy may cause you to lose any of your non-exempt assets.

However, there are still assets you can keep. Few of the things that you may surrender are as follows:. Friendly and helpful staff. Kept me informed and explained every step. No judgement just honest help.

Such an easy process from start to finish. The staff were so friendly and helpful. Would recommend to anyone who is struggling with debt. Absolute lifesavers!!!