If you are suffering from personal financial difficulties, such as overwhelming debt, you may be considering bankruptcy as a solution. Choosing a Druker and Associates licensed trustee certified by the federal government under the Bankruptcy and Insolvency Act will ensure a dignified, respectful and non-judgmental process.
This website has compiled questions and answers that clearly describe the process, advantages and disadvantages of claiming personal bankruptcy. When is personal bankruptcy the solution? How do I claim bankruptcy? Who will know? To claim bankruptcy in Canada, one must live or do business in Canada, and must be insolvent (to owe at least $1,000 and be unable to meet debts at their due dates)
The definition of Bankruptcy in Canada is that you assign (surrender) any and all possessions to a Trustee in Bankruptcy. This process has been created to give those in severe debt a chance to start over and rebuild a new credit existence, free of burdening debts accumulated from past experiences.
Personal bankruptcy is a legal process, governed by federal law designed to permit an honest but unfortunate debtor to obtain relief from his or her debts while treating creditors equally and fairly. Trustees in Bankruptcy are federally licensed therefore their fees are regulated and moderated to ensure a reasonable cost for debtors. The “stay of proceedings” is the legal process which immediately stops any legal action from happening, and puts an end to any that may already exist.
Bankrupts are entitled to an automatic discharge from bankruptcy in 9 months, the minimum time set by the Court to be bankrupt, provided you have never been bankrupt before, are not a fiscal debtor or have your discharge opposed and complete various duties and responsibilities. The future ability to obtain credit could be affected, since bankruptcy will remain on a credit report for several years. A financial institution or counselor can advise on how to rebuild credit quickly and efficiently repair any post bankruptcy damage.
There are two types of administrations when filing for bankruptcy; summary and ordinary. In the case of a summary administration, the realizable assets are of 10,000$ or less, the other type is an ordinary administration where realizable assets exceed 10,000$. The idea between these different administration types is to allow for less administrative tasks so that the cost of filing a bankruptcy in these simpler situations can be minimized.
If you apply for credit with another lender, that lender will learn about your bankruptcy from a credit bureau.
You need not fear the embarrassment of your friends or relatives seeing any bankruptcy records about you, except those you choose to tell. In most cases, creditors are advised by mail only, no advertisements are made in legal section of local paper and only your creditors will know you have filed for bankruptcy. With this reassurance, you can contact a Druker and associates bankruptcy trustee now, for a free, confidential consultation.
Over 100,000 people a year file for personal bankruptcy in Canada from all walks of life and all income levels. Causes may be a marital breakup, loss of employment, overwhelming credit card debts... and a host of other personal or professional disappointments. Regardless of your reasons, if you are considering bankruptcy, you need to contact a Certified Trustee in Bankruptcy to walk you through the procedure. This process was created to give an honest but unfortunate debtor relief from their debts in order to allow for a fresh financial start. This does not imply that there are no payments or responsibilities that come forward.
The following are a list of duties:
You will attend 2 follow-up counseling sessions focusing on the following points in addition to addressing any of your concerns.
- A budget detailing income and how it was spent in order to instill new disciplinary routines.
- Taxes will need to be filed and paid on time.
Contact us today for a free consultation and get a second chance at a better life!
