Sometimes you just have to ask the right question and everything becomes clear.
Do you have any financial problems? Are you experiencing one or more of these situations?
If you answered yes to one or more of these questions, we can help you.
To file for bankruptcy, you must be a Canadian citizen. Have a Canadian address and have more than $1,000 in debt. You must be insolvent, which means that you are unable to pay your debts as they become due.
The law allows you to keep up to $7,000 of current market value of your personal property. In fact, in most cases, your trustee will evaluate your belongings and agree with you that you can keep all your furniture from your main residence as well as your clothing necessary for everyday life.
Your trustee will help you identify which assets will need to be turned in. In general, be aware that the following assets will be turned over to the trustee to be used to pay off your debts:
If your car is leased, you can keep it as long as you make the lease payments;
If you financed your car purchase with a loan, the trustee will make sure that your payments are up to date and you will be able to keep your car as long as you continue to make the payments stipulated in the loan contract;
If there is no debt on your vehicle and a significant value can be derived from the sale of the vehicle, the trustee can either sell it or ask you to pay compensation in bankruptcy for the benefit of the creditors.
If you are no longer able to pay your mortgage, your bank can take it back and sell it;
Several other contexts may exist and we advise you to consult us to discuss them.
They are not affected by your bankruptcy unless the debts are joint. Then your spouse will become responsible for all joint debts.
There are three types of creditors:
Creditors who retain recourse despite a bankruptcy or consumer proposal:
In the context of a bankruptcy or consumer proposal, personal taxes are a dischargeable debt. The same is true if you are an individual who has a GST and/or QST debt. This debt would also be a dischargeable debt.
No. As a bankrupt you cannot apply for or incur credit.
A bankruptcy results in an R9 rating on your credit report and this rating remains for the duration of the bankruptcy and 6 years after your discharge. Your credit report is already affected if you have been struggling to pay off your debts for some time.