If you feel unable to repay the mounting debt you owe your creditors, it’s likely you’ve already considered filing for personal bankruptcy.
Perhaps you’ve started missing your mortgage payments, your wages are being garnished, or a creditor has started a lawsuit against you. Maybe you’re just tired of all the collections calls.
Whatever the reason, if you’re finally ready to face your debt problems head on, congratulations. You’re already one gigantic step in the right direction to getting rid of your debt – and the anxiety that comes with it.
Bankruptcy can be a difficult choice, but it also offers eligible debtors significant benefits.
Some advantages to filing for bankruptcy include:
Immediate protection from your creditors.
Because bankruptcy is a legal process in Canada, once you file, an “automatic stay of proceedings” takes effect. This essentially means:
- Those collections calls will stop;
- Wage garnishments will stop;
- Frozen bank accounts will be released; and
- Legal actions against you will be stopped – and new actions cannot be started.
The ability to finally eliminate your unsecured debts.
With a few exceptions, a bankruptcy will definitively handle your unsecured debts. That’s because once your bankruptcy is discharged, you will no longer have to legally pay back the unsecured debts which were discharged in the Bankruptcy.
The ability to “start fresh.”
And once your unsecured debts are behind you, you will have the opportunity you’ve been longing for to start to rebuild a better financial future.
How do I file for bankruptcy in Manitoba?
Though the decision to proceed with bankruptcy is a difficult one, the process of doing so is actually quite easy.
These three steps will get you started.
Step #1. Find a Licensed Insolvency Trustee.
In order to file for bankruptcy in Manitoba, you’ll need the help of a Licensed Insolvency Trustee.
These are the only professionals authorized, licensed, and required by the Federal government of Canada to help hard-working debtors like you file for Bankruptcy.
Your Licensed Insolvency Trustee administers your Bankruptcy, holding any payments received in trust for the benefit of your creditors.
Step #2. Meet With Your Licensed Insolvency Trustee.
It isn’t just bankruptcy that your Licensed Insolvency Trustee can help you with.
These professionals can provide you with a full range of debt relief options.
At your free, initial consultation, we’ll sit down with you and review your current financial situation. We’ll go over all the debt relief options available to you.
Step #3. File For Bankruptcy.
If you ultimately decide to file for bankruptcy, your Licensed Insolvency Trustee will request some information from you, including your personal details, a list of creditors, and a list of your assets.
Your Licensed Insolvency Trustee will then prepare the necessary paperwork and review it with you to ensure its accuracy, and verify your understanding.
Once you sign the paperwork, your bankruptcy begins, and your trustee will notify your creditors.
What happens after I file for bankruptcy?
You’ll be required to complete your bankruptcy obligations, including, for example, a monthly income statement and your attendance at two mandatory credit counselling sessions.
A first bankruptcy is typically discharged in 9 months’ time.
Are there drawbacks to filing for bankruptcy?
One of the biggest disadvantages is the effect a bankruptcy can have on your credit score.
But think of it this way: If you’re habitually missing loan payments or your bills are falling past due, it’s more than likely that your credit rating is already taking a beating. This type of delinquency stays on your credit report for years.
And while a bankruptcy will stay on your credit report for 6 to 7 years after discharge, at least you’ll be able to eliminate that debt completely once you’ve completed your bankruptcy. It’s a final solution to your accumulated unsecured debt that gives you the chance to start over.
Contact a Licensed Insolvency Trustee today.
If you’re wondering whether a Manitoba bankruptcy is the right next step for you or your family, contact us today. Remember, the sooner you reach out for professional help, the more debt relief options you may have available to you. Bankruptcy may not be inevitable. So get started on the fresh financial start you deserve, and contact us today.
If you need a little more information on how to file for bankruptcy in Manitoba before you pull the trigger, give us a call or set up an appointment at our offices. We can walk you through the process step by step and even file on your behalf.