It is not easy for many Canadians to declare an individual bankruptcy. Individual bankruptcy in Canada is handled by a licensed bankruptcy trustee. Although about 150,000 Canadians declared bankruptcy last year, some Canadians still think bankruptcy is a matter of profound disgrace. Therefore, before they are ready to submit documents, they do not need to obtain specific information from the trustee, but only need to be able to enter the trustee's office when they are ready to sign the dotted line.
If you are close to this step, but have not considered all the things you will have to do, before you announce your personal banking business, you need to know the following three things:
1. You may lose most of what you have.
2. Not all debt is eliminated in bankruptcy.
3. Submitting a consumer proposal may be another option for your bankruptcy.
First, the Bankruptcy Law of our Bankruptcy and Bankruptcy Law (BIA) aims to be fair to both creditors and creditors. Therefore, although protecting the debtors will not lose everything they have, it is expected that they will assume as much responsibility as the debtors who do not have serious deficits.
No one loses everything when it goes bankrupt. The reservation you get is determined by the provincial legislation. For people with important assets, this can have serious consequences, depending on where you live. There is a $40,000 homeownership exemption allowance in Alberta, but not in Ontario and Quebec.
You need to meet with the trustee in your area to determine what you will keep in the province when you declare your bankruptcy and what you will lose.
Second, you need to know about secured debts, such as car loans or home loans, and do not leave at bankruptcy. In addition, if you are paying alimony or support payments, or if you are repaying a student loan under 7 years of age, you still have a responsibility to make these payments after you have been discharged.
Third, for consumers who have important assets and a stable and verifiable source of income, consumer recommendations may be another option. This is a legally binding option and can only be obtained through a licensed bankruptcy trustee. If your income is high enough that you can literally repay the total amount of unsecured debt owed to you, then you may be eligible for a proposal.
To find out if this is your choice, please meet with the trustee in your area to assess your financial situation. The trustee will determine the amount that you can pay. If the amount is sufficient to repay some of the money owed to you for more than 5 years, you may be eligible. The trustee will propose to reduce the total amount owed by each creditor, which may be substantial. Most creditors are willing to accept more than what you owe because they are clearly aware that if you are forced to go bankrupt, they may be much less. Before announcing an individual's bankruptcy, consumer recommendations may be worth considering.
Orignal From: Three things to know before filing a personal bankruptcy
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