Bankruptcy Toronto and Consumer Proposal Across Canada
How to Handle Bankruptcy
If you are struggling with debt problems, you may be stressed out by the situation and confused about what options are available to you. Having a large amount of debt can be stressful and trying to figure out how to handle it can make things even worse. Thankfully, there are several different options available to people who are unable to pay their debts.
One route that you may wish to take is bankruptcy.
Bankruptcy is a legal process that provides a debtor who is unable to meet his or her financial commitments with a process for eliminating debt in an orderly manner. In Canada, bankruptcy can only be filed through a Bankruptcy Trustee. A bankruptcy trustee is an individual licensed by the Office of the Superintendent of Bankruptcy to administer the bankruptcy process.
Toronto bankruptcy situations can be handled by a bankruptcy trustee.
Financial issues leading to bankruptcy can be caused by many factors including to the high cost of living in many parts of Toronto, job loss and marital breakdown. While there are a number of different avenues that a person who is struggling with debt can take, bankruptcy offers several advantages. It is important to remember that everyone is different and that every financial situation is unique. A bankruptcy trustee can help you determine if the bankruptcy process is the right one for you.
One of the main advantages to filing for bankruptcy is that in general ( some exceptions include child support payments) no unsecured creditor can garnishee your wages or initiate any other collection action against you while you are in bankruptcy. This is important as it puts an end to calls from creditors and other potential actions.
Another advantage to bankruptcy is that you can include debts such as income tax debt, payday loans and personal loans in the bankruptcy process. You may or may not be required to make monthly payments to your creditors. This is dependent on your net household monthly income and the value of the assets you own like a car . The government allows you a certain amount every month to cover living expenses . A portion of any amount above this will be paid to your creditors . There are other advantages that you can discuss with your Toronto bankruptcy trustee in your initial meeting which is free of charge.
How Bankruptcy in Toronto Works
The bankruptcy process is a straightforward and tightly-regulated process. It starts when you meet with a bankruptcy trustee to discuss your current situation. The trustee can analyze your debt and income situation and discuss your options with you.
A Toronto bankruptcy trustee will also be able to work with you to get all forms completed properly if you do decide to file for bankruptcy. From that point on, the bankruptcy trustee deals with your assets and is responsible for all further communication with your creditors.
During the bankruptcy process, you have certain duties to perform and assuming that these are performed satisfactorily, in most cases, you will be automatically discharged from bankruptcy nine months after filing. If this is your second bankrupt discharge will occur in twenty one months
Bankruptcy gives you an opportunity to eliminate your debts and get back onto stable financial footing.