Occasionally bankruptcy is your only option.

A Bankruptcy should be considered only when there are no “other options” available. Over 80,000 Canadians filed for Bankruptcy in 2011. The Bankruptcy process is a formal form of restructuring and is filed under the Bankruptcy and Insolvency Act.

A Bankruptcy (depending on your surplus income) for a first time Bankrupt is up to 21 months and up to 36 months for a 2nd time bankrupt. Alternatively, you can file as many Consumer Proposals as you want without having more severe consequences for the insolvencies.

 

Bankruptcy Highlights

  • You are required to fill out monthly income and expense reports during your Bankruptcy
  • You are required to attend two counseling sessions
  • You cannot be a Director of an incorporated company
  • You may lose income tax refunds during your bankruptcy
  • You will not receive any GST /HST quarterly cheques during your Bankruptcy
  • You cannot obtain any credit as an un-discharged Bankrupt
  • The Bankruptcy remains on your credit rating for 7 years at an R9

Bankruptcy Benefits

  • Most wage garnishments cease immediately
  • Collection agencies can no longer contact you

Bankruptcy Process

Through this process a bankrupt is required to give full disclosure of all their assets, liabilities, income and expenses as well as any business holdings as part of the process.

  • You must be insolvent to file a Bankruptcy (debts are more than assets)
  • You cannot pick and choose the debts that are included
  • You cannot eliminate support or alimony obligation
  • You cannot eliminate student loans under 7 years
  • You cannot include secured debts such as mortgage and car loans
  • You are allowed to keep certain assets based on Provincial legislation

NEED A FRESH START!! Bankruptcy is not the only solution

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7368 Yonge St.,# 301B 
Thornhill, ON, L4J 8H9 
Direct Phone: 416-830-3414 
Main Line: 905-597-ABDC(2232) 
Main Fax : 905-597-2260 
Toll Free: 1-888-225-4746