Business Bankruptcy in Canada is primarily governed by the Bankruptcy and Insolvency Act (BIA), a…
If you’re in financial distress, the thought of having to file for bankruptcy has probably crossed your mind more than a few times.
And that’s likely for good reason.
Because while there are downsides, the bankruptcy process definitely offers hard-working Canadian debtors some serious upsides to their money troubles.
What are some advantages to filing for bankruptcy?
Bankruptcy is a legal process in Canada.
One major advantage is that the moment you file for bankruptcy, you will receive protection from your unsecured creditors.
This means an end to all the collections calls, lawsuits, garnishments, frozen bank accounts, and other efforts by your unsecured creditors to collect on the debt you owe.
Another advantage is if you complete all the obligations required of you in bankruptcy, you will finally achieve relief from your unsecured debt – typically within 9 months if it’s your first bankruptcy.
And once you are discharged from bankruptcy – with certain exceptions – your debts will be eliminated. (The types of debts that survive bankruptcy include student loans less than 7 years old, fines, penalties, and child support.)
What are some disadvantages to filing for bankruptcy?
Many debtors are concerned that a bankruptcy will affect their future ability to get credit.
That’s because a bankruptcy will be reported with the lowest possible score – an R9 – on your credit report.
And it’s reflected on your credit report for 6 years after the date of discharge for a first time bankruptcy, and longer for a second time bankruptcy.
But if you think about it, if you’ve been missing mortgage or loan payments, your credit rating is very likely suffering anyway.
Not acting quickly to resolve that debt problem for good will simply prolong the time that you have poor credit, instead of getting the fresh start you deserve so you can rebuild it.
How do I go about getting assistance with bankruptcy in Ontario?
The decision to file for bankruptcy is not an easy one to make.
But the process on how you can get bankruptcy assistance is.
Here are 3 steps to help you get the advice you need, so you can make the best decision for your financial future.
#1. Realize you have a debt problem.
Before you can get help, you need to face your debt situation head-on and acknowledge that you may not be able to handle it effectively on your own.
Some signs that you may need to consult a professional include any one of the following:
- You’re constantly reaching – or exceeding – your credit card limits;
- You’ve missed one or more mortgage or other loan payments;
- You’re taking out payday loans;
- You’re taking out cash advances on your credit cards;
- You’re getting calls from collections agencies;
- Your wages are being garnished;
- You’ve received notice of a lawsuit to recover money you owe.
#2. Reach out to a Licensed Insolvency Trustee.
If you want to proceed with the bankruptcy process, you will need the assistance of a Licensed Insolvency Trustee to do so.
These federally-regulated, licensed professionals are the only individuals authorized by the Canadian government to help hard-working Canadian debtors file for Consumer Proposals and bankruptcies.
But Licensed Insolvency Trustees can do a lot more than just that.
You will receive debt help advice about all options available to you. In fact, it is possible that bankruptcy may not be your only option.
When selecting a Licensed Insolvency Trustee, be sure to choose someone who is:
- Licensed by the Superintendent of Bankruptcy;
- Local to – or easily accessible by – you, since you’ll need to meet them in office; and
- Able to answer any questions you have with explanations that are clear and that you understand.
#3. Meet with your Licensed Insolvency Trustee.
Your first consultation with a Licensed Insolvency Trustee is free.
It’s at this free initial consultation that you will be able to provide them with a detailed financial overview of your situation and ask any questions you may have.
Not only will your Licensed Insolvency Trustee provide you with all debt relief options available to you, but they will give you with their expert, unbiased advice on the best solution for you and your family.
If you ultimately decide that bankruptcy is the best option for you, your Licensed Insolvency Trustee will advise you on how to file for bankruptcy in Ontario, and see you through the process.
Get Bankruptcy Help in Ontario Today
If you’re tired of feeling burdened by overwhelming debt and want to get assistance with filing for bankruptcy, don’t delay. The sooner you contact us, the more options you may have available to you. It’s our mission to help you achieve the financial relief you seek. Pick up the phone and schedule your free initial consultation today.
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