When all other options are no longer available, bankruptcy is a last resort that allows you to prevent the situation from worsening and finally regain control of your life. It is, in other words, a whole new start to regaining good financial health.
In many cases, almost no property is seized in bankruptcy.
Indeed, declaring bankruptcy does not mean that you will lose everything. Whatever happens, you will keep the essentials in order to maintain a reasonable standard of living. You will pay a sum of money monthly according to your income and the assets you want to preserve. You will not lose the instruments and tools essential for your work and you will keep the necessary furniture in your main residence. In fact, filing for personal bankruptcy interrupts foreclosure proceedings as well as any legal proceedings against you.
A first bankruptcy lasts approximately 9 months in Canada
Although several factors affect the longevity of bankruptcy, it is usually of limited duration. However, if you have not followed your conditions, your bankruptcy may well take longer. In particular, you will need to complete the required payments to your trustee and attend at least two consultation sessions.
You don’t have to do the same if your spouse has declared bankruptcy
You are in no way responsible for the debts of others due to a common-law relationship or through marriage.
You are no longer allowed to own credit cards
The law requires that you surrender all your credit cards to the trustee in bankruptcy, regardless of whether there is a balance owing or not. You are not entitled to any credit during this period.
To find out more or for more advice, do not hesitate to consult us and do business with our team of professionals.