Bankruptcy is a legal status governed by federal legislation.
The Bankruptcy and Insolvency Act governs the whole area of bankruptcy and is designed to act as a safety net for the people who find themselves over their head in debt.
While bankruptcy is not the only solution to debt problems or money trouble, it is sometimes the best solution.
We are here to help you figure out whether bankruptcy is right for you and – if it is – provide Bankruptcy services to help you file.
In order to qualify for bankruptcy, you must be insolvent, which means you are in a situation where your assets, if sold, would not provide enough financial means to solve your debt problems.
When you go bankrupt you assign all your assets – everything you own, have a right to, or interest in – to the Licensed Insolvency Trustee (LCTaylor) for the general benefit of your creditors.
Some assets – usually your household furnishings, your car, your residence, your RRSPs and some insurance policies- have exemptions from bankruptcy, meaning that they are not signed over as part of the bankruptcy. Farmers are often eligible for other exemptions, over and above the ones listed above.
Your Licensed Insolvency Trustee will be able to define more precisely what assets are exempt and how the exemptions apply in your particular situation.
The Bankruptcy and Insolvency Act also states you should – if you can afford it – make payments to your creditors through the course of a bankruptcy. Your monthly payment capabilities will be worked out with your Trustee and will vary depending on your financial circumstances.