A Guide To Filing For Personal Bankruptcy
The decision to file for bankruptcy is not an easy one. You want to know things like:
- Can I afford to file bankruptcy?
- Will I be better off financially if I declare bankruptcy?
- How long will it take for me to recover?
- Do I even need to file bankruptcy?
If your debts are so overwhelming that you are considering bankruptcy then you should meet with a bankruptcy trustee. Our guide to filing bankruptcy will help you understand a little more of what you can expect when you do:
Assess Your Debt – Do You Need To File Bankruptcy?
One of the first things a trustee will do is talk with you about your financial situation. Up until now you have dealt with your debts on your own but you need to know if you should be considering filing bankruptcy? The trustee will ask you questions about your debt, your assets and your income and expenses.
- Assessing Your Debt – What Information Will You Need
- What To Expect At Your Bankruptcy Consultation
- Questions To Ask The Trustee At Your Initial Interview
Are You Eligible To Declare Bankruptcy?
When you meet with your trustee they will look at two questions. Are you eligible to file for bankruptcy and should you file for bankruptcy.
Eligibility is a fairly simple test based on requirements in the Bankruptcy and Insolvency Act. You must be insolvent and owe at least $1,000. Deciding whether or not you should file bankruptcy is where the expertise of your trustee can help. With the information gathered during your assessment, the trustee will be able to explain your debt relief options including personal bankruptcy or a consumer proposal. They will address any issues including what assets you may lose and what your bankruptcy will cost.
- Am I Eligible for Bankruptcy?
- Will I Lose Everything If I Declare Bankruptcy?
- 5 Alternatives to Filing Bankruptcy in Canada
Every person’s situation is different. Contact us today a free personal consultation with a Local Bankruptcy Canada Trustee.
Bankruptcy Trustee Administers The Process
If you do decide that bankruptcy is your best solution then your trustee will continue with the bankruptcy process. This will include preparing, reviewing and submitting your bankruptcy paperwork, and generally administering all aspects of your bankruptcy or consumer proposal. It is important that your choose a bankruptcy trustee who will take care in performing their trustee duties.
- More about the Role of the Bankruptcy Trustee
- Who Does A Trustee Work For?
- More about How Bankruptcy Works
Perform Your Bankruptcy Duties
During the bankruptcy process you are required to perform certain duties, including making a payment to the trustee each month to cover the administrative costs of the bankruptcy, providing the trustee with proof of your family income each month, making any required surplus income payments, attending two credit counselling sessions, providing the trustee with information necessary to file your tax returns and assist the trustee in realizing on any of your assets. At the end of the first seven months (or later in a second bankruptcy) the trustee will also calculate your average income to determine if you have excess surplus income.
- What are my Duties During Bankruptcy?
- What Debts are Eliminated in Personal Bankruptcy?
- What is the Cost of Bankruptcy in Canada?
Receive Bankruptcy Discharge
Once all duties are complete, you are eligible to receive your bankruptcy discharge. Congratulations! Your bankruptcy is now officially over and your debts are eliminated.
Begin the Recovery Process After Bankruptcy
Now that your bankruptcy is completed. you can begin the process of repairing your credit after bankruptcy.
If you are considering filing for bankruptcy our trustees can answer any of your questions about filing bankruptcy and can help you get on the road to financial recovery.
More information about filing bankruptcy in Canada
Our bankruptcy trustees blog about the steps and stages of filing bankruptcy and answer key questions about every aspect of personal bankruptcy in Canada. Have a question? Visit our trustee blog and leave a comment. Our trustees review all comments and provide detailed answers to help our readers.