Throughout our day in my Downtown Toronto office located at 8 King Street East, we get a several similar requests: I have a lot of debt that is overwhelming and how do I declare bankruptcy?
First you need an appointment with a trustee for an assessment of your financial situation and to discuss ALL options (not just personal bankruptcy). Because as it turns out, many who think they need to declare personal bankruptcy do not, and actually have other options such as a consumer proposal for dealing with their debts.
This assessment or meeting takes about an hour and is a free consultation. Once we have this meeting there is typically some homework or information that you need to gather and we prepare the necessary paperwork so you can sign the bankruptcy paperwork and actually file for bankruptcy. We then e- file the paperwork with the Superintendent in Bankruptcy to get a court number or your ID number for your bankruptcy. How quickly this process moves is up to you to decide.
On the technical side of things in order to file for bankruptcy, you need to be of age or over 18, resident in Canada and have debt totaling at least $1,000. For complete details please go to our web site http://bankruptcy-canada.com/how-to-file-bankruptcy-canada/. This criteria is not difficult to meet so it is usually other issues that come up at the consultation that will change a person’s mind on how they want to deal with their debt. In November 2009, the Bankruptcy and Insolvency Act changed many of the duties or rules related to bankruptcy and as a result, for many, the duties mean a much longer bankruptcy and therefore make a consumer proposal a better option for dealing with your debts.
Once you are bankrupt, you have legal protection from your creditors against any further garnishment etc. A bankruptcy is a minimum time of 9 months with duties you need to complete to be discharged or relieved from your debts. During the time you are in bankruptcy you do not pay any of your debts. You do have to report you income every month and pay a portion or 50% that is over the allowance the court sets. The allowance is based upon family size so it varies. There are two counseling sessions you are required to attend on rebuilding your credit and budgeting. The trustee is required to prepare the tax returns for the year you go bankrupt.
So you may feel you need to file for bankruptcy. Whether or not that is the case will depend on your individual circumstance so to start the process you need to make a call to start the discussion at 310-PLAN.