What Is Bankruptcy in Canada
Bankruptcy in Canada is a legal process that allows you to eliminate most (if not all) of your unsecured debts. Filing personal bankruptcy in Canada provides you protection from your creditors. After you file bankruptcy collection agencies stop calling, wage garnishments stop.
When you file for bankruptcy in Canada a trustee in bankruptcy, licensed by the federal government, acts as an administrator of your bankruptcy. You make payments, based on your income, usually for between 9 and 21 months and you may lose some of your assets. But when your bankruptcy is finished, all of your eligible unsecured debts are discharged in full and you have a fresh start.
Should I File For Bankruptcy in Canada?
If you are thinking you may need to file for bankruptcy in Canada you are not alone. In the past year more than 80,000 individuals filed personal bankruptcy in Canada. These are average Canadians who, because of divorce, illness, job loss or easy access to credit, relied on debt to make ends meet and personal bankruptcy became their last option.
Bankruptcy can be an option for individuals severely burdened with debt who are unable to make their payments. If you are wondering if bankruptcy is a solution for you contact a Trustee to discuss your options further.
Top Bankruptcy Canada FAQ's?
What is bankruptcy in Canada, how can I file bankruptcy, how do Canadian bankruptcy laws work? For answers to these questions and more, read our most frequently asked questions on personal bankruptcy in Canada.
Bankruptcy versus Consumer Proposal: Which is better? The correct answer is it depends upon you situation. Read our report on Why Choose A Consumer Proposal Over Bankruptcy?
- How do I file bankruptcy in Canada and how does the bankruptcy process work?
- What assets do I lose in a Canadian bankruptcy and what assets do I get to keep?
- What does it cost to go bankrupt? What is surplus income and how does the trustee calculate my payments during my bankruptcy?
- How long will my bankruptcy last?
- How do I choose a bankruptcy trustee? Do I need a referral?
- What happens after file bankruptcy? How does a bankruptcy affect my credit score?
- How can I avoid bankruptcy?
If you are experiencing money problems, and need debt relief, we recommend you contact us for a free, no obligation evaluation. All of the Bankruptcy Trustees listed on Moneyproblems.ca offer this services free of charge. This initial, no-obligation consultation will help you understand if bankruptcy is the right choice for you as well as explain about the alternatives to bankruptcy that can help you become debt free.