Personal Bankruptcy Process In Barrie
If you are having financial issues and you are struggling to repay your debts as they become due, you may be looking into the Canadian personal bankruptcy process. Filing for bankruptcy in Canada is a legal process that must be administered by a licensed insolvency trustee in bankruptcy.
Bankruptcy provides those who are unable to repay their debts as they become due with an opportunity to eliminate most (if not all) of their debts and start fresh. Canadian personal bankruptcy situations are regulated by the federal Bankruptcy and Insolvency Act (BIA). This act also governs the Office of the Superintendent of Bankruptcy (OSB), which is responsible for ensuring that bankruptcies are administered fairly and responsibly. Licensed insolvency trustees administer the process.
The Canadian Personal Bankruptcy Process
The first step in Canadian personal bankruptcy is to meet with a trustee. It’s important to note that meeting with a trustee does not automatically mean that you will end up filing for bankruptcy. In your initial consultation with the trustee (which is usually offered for free) the trustee will review your financial situation.
After fully reviewing your finances, the trustee will provide you with information on the debt relief options that are available to you. One of these options could be filing for bankruptcy.
The trustee will also review your current assets. It is a very common misconception that you lose everything you own as a part of the Canadian personal bankruptcy process. This is not true. The goal of bankruptcy is not to leave you with nothing; it is to give you an opportunity at a fresh start. Therefore, you are able to keep certain assets that are deemed necessary to live a basic lifestyle and to earn a living. These are called “exempt assets.” Each province in Canada has different lists of exempt assets and the value of assets that can be considered exempt. Your trustee will let you know what will happen with your assets before you make the decision to file for personal bankruptcy.
If filing for personal bankruptcy is the option that you decide to proceed with, the trustee will make sure that all of the required forms are completed and submitted to the Office of the Superintendent of Bankruptcy. This can be done electronically to save time and make the process easier.
Your trustee in Barrie office will deal with your assets and make sure that you are able to keep all exempt assets.
Once you have filed for Canadian personal bankruptcy, your trustee will be responsible for all communication with your creditors. They are not able to contact you directly nor are they able to take any efforts to collect their debts; this includes sending a collection agency after you or filing legal action against you to collect debts.
If a meeting of your creditors is called, you must attend. However, in most personal bankruptcy cases, a meeting is not called.
You are responsible for completing certain duties as a part of the Canadian personal bankruptcy process. For example, you must attend two financial counselling sessions. The goal of these sessions is to teach you more about budgeting and financial planning so that you are less likely to end up in financial trouble in the future.
You are also responsible for providing your trustee with monthly income reports. These reports will be used to determine if you need to make surplus income payments. The federal government sets limits for how much you can earn under bankruptcy without needing to make surplus income payments To your creditors. This amount is based on your family size. If you earn more than the limit for your family size, you will need to make surplus income payments. Your trustee will explain these payments to you and ensure that you make these payments as required.
Under bankruptcy, it is also your responsibly to make sure that your trustee has updated contact information for you. If you move, change jobs or change your phone number, you will need to supply your trustee with the updated information.
As you can see, the Canadian personal bankruptcy process is quite straightforward. It is a legal process and so the details of this process are spelled out by law. A trustee in bankruptcy can help you understand more about this process and give you the information that you need to determine if this process is the right one for you.
Our Barrie Office Location.
Our Barrie Bankruptcy Office is situated on Dunlop Street East in downtown Barrie, next to Memorial Square.
Ample parking is available at our building. Barrie Transit also offers local transportation to Dunlop Street.
93 Dunlop Street East, Suite 302
Barrie, Ontario L4M 1A8
Tel: (705) 300-3328
To apply for your free, no-obligation debt relief consultation, click here.