Bankruptcy in Ontario & Alberta
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What is bankruptcy?
Bankruptcy is a debt relief solution that involves assigning/surrendering your property or assets to a Licensed Insolvency Trustee.
The primary purpose of bankruptcy is for the debtor to clear their debts and start afresh.
Our Licensed Insolvency Trustees (previously known as Trustees in Bankruptcy) at Harris & Partners Inc. know that filing for bankruptcy can be a daunting process. Don’t go it alone; contact us before you file for personal bankruptcy in Ontario or Alberta
Is bankruptcy worth it?
Debts can be overwhelming and can leave you feeling like there’s nothing left to do. While declaring bankruptcy should never be your first solution to getting out of debt, it is a viable way to help you out financially if you’re in over your head.
While declaring bankruptcy will eliminate most of your debt, end phone calls from debt collectors and stop collection actions and garnishments, it will not solve all your problems if you don’t make changes to your financial habits.
Bankruptcy essentially gives you a second chance, but what you do with that second chance is up to you. During the bankruptcy process you will usually receive financial counselling, which gives you the tools needed to succeed and helps you examine possible lifestyle changes so that you don’t fall back into old bad habits and the recurring cycle of debt.
What is exempt when declaring bankruptcy?
In the Ontario and Alberta Areas, the following items are exempt from seizure:
- Personal effects no more than $5,650.00
- Household goods no more than $11,300.00
- Tools-of-trade no more than $11,300.00
- Motor vehicles no more than $5,650.00
- Home Equity no more than $10,000.00
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What debts does bankruptcy help you get rid of?
All debts factor into your personal bankruptcy. However, some debts will carry through after bankruptcy and require regular payments (e.g., child support or related debts).
Are you eligible to file for bankruptcy?
Anyone who owes at least $1,000.00, is 18 years of age or above, and is unable to meet obligations as they become due is eligible to file for bankruptcy.
Declaring bankruptcy in Ontario and Alberta
There are 5 steps to declaring bankruptcy in Ontario and Alberta:
1. Contact a Licensed Insolvency Trustee (LIT)
2. Gather your creditor, asset and income information and meet with the Trustee
3. Sign the documents and an affidavit
4. The Trustee will file the paperwork with the Office of the Superintendent of Bankruptcy of Canada
5. Make your payments and attend your mandatory counselling sessions to receive a discharge from bankruptcy
You can meet with a Licensed Insolvency Trustee (previously known as a Trustee in Bankruptcy) at Harris & Partners Inc. at one of our locations in Ontario or Alberta to review your financial situation.
Your Licensed Insolvency Trustee will then advise you on your best options.
Once you decide that personal bankruptcy is the best solution, the trustee will prepare the proper documents for you to sign and submit to the official receiver. At this point the bankruptcy is in effect. Your trustee then notifies all creditors of your official status.
Following bankruptcy, you must:
1. Fully disclose all assets and liabilities
2. Attend two financial counselling sessions
3. Inform the trustee of any material change of income
4. Inform the trustee of any change of address
5. Attend all meetings called by the trustee
Frequently asked questions
Get in touch with Harris and Partners
Our Licensed Insolvency Trustees (previously known as Trustees in Bankruptcy) at Harris & Partners Inc. know that filing for bankruptcy can be a daunting process. Don’t go it alone; contact us before you file for personal bankruptcy in Ontario. One common misconception is that only those who are out of money entirely can file for bankruptcy. This simply isn’t true. While you must show you are unable to pay bills before you file, there’s no reason to wait until you’ve run out of money completely.
For residents in Markham, Barrie, Brantford, Hamilton, Kitchener, Oshawa, Pickering, St. Catharines, Brampton, North York or Toronto, personal bankruptcy doesn’t have to overwhelm you. Get answers to these commonly asked bankruptcy questions; contact us anytime if you don’t see answers to your questions below.