You have accumulated too much debt and you do not see any way to get out of it? Do you constantly receive calls from your creditors? Personal bankruptcy could be your best option for dealing with your financial problems.
Why go bankrupt?
- Bankruptcy eliminates all your debts *. You will not have to pay your creditors anymore.
- Your property and your salary can no longer be seized. Your creditors can not harass you anymore.
- You will be able to keep your furniture and, in most cases, your house and car.
- You are protected against service cuts: electricity, telephone, etc.
To declare personal bankruptcy, the Bankruptcy and Insolvency Act requires that you have at least $ 1,000 in debt and that you are unable to repay it.
In Canada and Quebec, you absolutely must meet a trustee in bankruptcy to declare bankruptcy. The trustee works for you: he ensures that your rights are respected.
How much does a bankruptcy cost?
The costs of bankruptcy are prescribed by the government. You will have to make monthly payments to your trustee in bankruptcy who will handle the distribution among the creditors. In the majority of cases, payments are $ 150 to $ 200 per month for 9 months.
How is bankruptcy?
1. Preliminary meeting
At the first meeting (at no cost and no obligation), an advisor will take the time to listen to you about your options. Bankruptcy is not always the only solution.
2. Declaration of Bankruptcy
With the assistance of your trustee, a bankruptcy declaration will be filed with the Office of the Superintendent of Bankruptcy. From that point on, you are protected under the Bankruptcy and Insolvency Act.
3. Meeting of creditors (optional)
In rare cases, a meeting with your trustee and your creditors is necessary.
4. Two consultations
You will get two consultations with your trustee in bankruptcy that will give you advice related to financial management and healthy consumption habits.
After 9 months (21 months if you have a portion of your salary that is seizable), you are automatically released from your debts and your bankruptcy ends. In exceptional cases, you will have to attend a hearing that will determine the conditions of your release. Consult an advisor for more information.