There’s not a single person in Canada who loves to declare bankruptcy but it is something that happens. Sometimes, in spite of a person’s best efforts to manage their financial matters effectively, their finances spiral out of control and as a result they fail to pay off their personal and business debts. If you’re a resident of Canada and you’ve failed to repay your multiple debt obligations, you might feel that bankruptcy is the best option for you. However, before taking the plunge into the Canada bankruptcy bandwagon, you should educate yourself on the bankruptcy laws in Ontario so that you don’t take a wrong decision.
Facts that you should know about filing bankruptcy in Canada
Below mentioned are the facts that are associated with filing bankruptcy in Canada. Remember them before you choose to become a bankrupt.
- You won’t lose everything: If you file bankruptcy in Canada, you won’t lose everything. Most of your assets are exempt from seizure in Ontario and you can even keep your car and home while filing bankruptcy in Canada.
- You can qualify for an automatic discharge in 9 months: Are you a first-time bankrupt with no surplus income? If answered yes and if you’ve completed all your duties, you can be eligible for an automatic discharge within 9 months.
- You will certainly get a fresh financial start: When you file for bankruptcy in Canada, you can get help of the legal process that will allow you to eliminate most of your debts. The collection agencies and the creditors will stop calling and wage garnishment will also stop.
The entire process of filing bankruptcy in Canada
Read on the concerns to know the process of filing bankruptcy in Canada.
- Meet the trustee: In Canada, bankruptcy can be filed only with the help of a Trustee in Bankruptcy, an individual who will be licensed by the OSB or the Office of Superintendent of Bankruptcy. Therefore the first step would be to find a trustee in your area after consulting the Yellow Pages.
- The trustee files for bankruptcy: Once the trustee files for bankruptcy, you will be declared bankrupt and then you can stop making payments to the unsecured creditors and they can’t even take any legal action against you.
- The trustee will notify your creditor: He will notify your creditors that you’re a bankrupt and he may even arrange a meeting with the creditors depending on the size of bankruptcy that you’ve filed.
- The trustee will sell off your assets: When you’re bankrupt, the trustee will sell off all your assets apart from the exempted ones by the federal laws.
- You make the monthly payments: You then have to make the monthly payments, depending on the type of bankruptcy that you’ve filed. Once you start making the monthly payments, you can start a new financial life.
Therefore, if you’re a resident of Canada, you should take the right steps to file bankruptcy. Take into account the above mentioned facts and choose to lead a financially secured life.
Andrew Jackson is a financial writer who has profound knowledge on the contemporary financial world. He loves to contribute his articles to various financial communities, websites and blogs so that people who are going through distress, can read and help themselves get out of the debt mess.