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Filing bankruptcy has a number of immediate benefits for the debtor:

  • A Stay of Proceedings goes into effect as soon as the bankruptcy documents are filed which prevents creditors from taking any action to collect their debt;
  • Collection calls stop;
  • Interest stops accruing;
  • Any garnishee orders in place, or contemplated are stopped.

In most cases a person is out of bankruptcy in nine months, at which time all eligible debts are erased.

In most cases all assets are retained.

Trustee fees are regulated by the government. Fees come out of the required payments, with a minimum cost of approximately $1,800 payable over 9 months.

Steps from filing bankruptcy to the discharge.

  1. Get some information on bankruptcy and consumer proposals so you understand the rules;
  2. Call a trustee to make a free, no obligation consultation;
  3. The trustee will review your financial information and suggest your options.  You will ask your questions;
  4. Think over the information you received and when you are ready call the trustee to set a time for you to sign the bankruptcy documents;
  5. The trustee will mail out the bankruptcy information to your creditors.   If any creditors contact you for payment tell them you filed bankruptcy and refer them to your trustee;
  6. The creditors can request a creditors’ meeting but seldom do;
  7. Each month you must send the trustee a statement of your income and expenses and the required payment;
  8. You are required to take two counselling sessions during the first seven months of the bankruptcy;
  9. At the eighth month the trustee will write a report on how you conducted yourself before and while in bankruptcy and make a recommendation on your discharge.
  10. The vast majority of people are out bankruptcy in nine months.

Canada’s bankruptcy laws have the following objectives:

  • In the case of an individual, to permit an honest but unfortunate debtor to obtain a discharge from his or her debts.
  • To provide for the orderly and fair distribution of property among the creditors.
  • To allow an investigation to be made of the affairs of the bankrupt.

The bankruptcy laws have a positive effect on the average Canadian taxpayer. Bankruptcy law helps promote enterprise in Canada by encouraging entrepreneurship. Bankruptcy law also acts as a social safety net for individuals which provides them a fresh financial start and integrates them back into mainstream society as tax paying citizens.

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Bankruptcy Essentials Book.

Exemptions are included in the Bankruptcy Essentials Book.

This book is a “MUST HAVE” for anyone considering bankruptcy or a proposal or considering using a credit counsellor.

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