Our friendly & professional personal advisors are trained to provide you with expert advice on bankruptcy and other credit card debt relief solutions. We have a proven track record in the field of personal insolvency.
Unmanageable debt can feel pretty overwhelming. Right now you may be thinking that bankruptcy is the only way out. It is one way but not the only way.As a matter of fact, after consulting with us, only 1 in 5 people choose to file for bankruptcy. You do have options.
“Because of the help you have been giving me, every day things are a little better. I can truly see that there is light at the end of the tunnel.” – Retired woman
“In 2009, you assisted (& counseled) my wife Kim & I through the options of a consumer proposal and ultimately bankruptcy. Your compassion and insight were invaluable to us in that process and now (8 years later), Kim and I are well established financially and have rebuilt our credit-worthiness.” – J.K. Winnipeg, MB
Once you file bankruptcy you have immediate protection from your creditors. All collection calls stop and wage garnishment will cease. You will be required to sign over any assets that are not exempt under legislation, to your trustee for the benefit of your creditors. You will also need to give any credit cards in your possession to the Trustee for disposal.
Depending on the province you live in – the laws are different. But as a general rule you are allowed to keep your household furnishings, one vehicle (if used to get to and from work), tools of your trade and, in many cases, your home – depending on how much equity is in it. You will also be able to keep locked in RRSP’s and pensions.
Bankruptcy eliminates most unsecured debts such as credit cards, bank loans, lines of credit, payday loans, and debt to Revenue Canada. There are certain debts that would not be removed such as child and spousal support, alimony payments, student loans less than 7 years old, and court imposed fines.
Your creditors are entitled to any realizable equity you have in your home. If you have equity in your home your Trustee will need to calculate whether these is enough equity to allow a realization for the creditors. If there is, you will be able to decide whether to surrender the home, or to arrange to make payments to your trustee to buy back the equity. Any payments are distributed to your creditors. In the case of realizable equity, you may want to look at filing a consumer proposal instead of a bankruptcy. The Trustee will discuss this with you so that you can make an informed decision. If you have little or no equity in your home you may keep it providing you can afford to make the mortgage payments. If you cannot make those payment, the secured creditor will proceed with foreclosure.
Usually the only people that will know about your bankruptcy is your trustee and your creditors. Your employer does not have to know unless your wages are being garnished. Anyone else would need a reason to search the public records and pay a fee
In Canada a bankruptcy will last a minimum of 9 months if this is your first bankruptcy. The length of time may be longer if you have surplus income based on national guidelines set by the Superintendent of Bankruptcy.
When you file for bankruptcy a note will appear on your credit report. It will indicate that you have filed, the date you filed, and the date of your discharge.
For a first time bankruptcy this will stay on your file for a period of 6 to 7 years.