Bankruptcy is an unfortunate reality for many Canadians, and the decision of personal Bankruptcy filing is never made lightly. Filing is a last course of action in response to debts that have spiraled out of control.
If you are considering filing for Bankruptcy, the first step is to conduct a thorough assessment to explore if any other potential options, such as debt consolidation or a Consumer Proposal, will work for you.
If, together, we decide that the other solutions will not provide the debt relief you need, we’ll help you take the necessary steps to file for Bankruptcy.
Why File for Personal Bankruptcy?
Despite the many misconceptions and stigma behind personal Bankruptcy filing, it is actually a way to protect yourself. Bankruptcy exists as a solution to ensure that honest people who meet with unfortunate circumstances will never be completely enslaved to a debt they can’t hope to repay.
A personal Bankruptcy will ‘wipe the slate clean’, eliminating most of your unsecured debts and putting an end to collection actions such as property seizures, wage garnishments, and harassing phone calls from creditors and collection agencies. A Bankruptcy will also include mandatory debt counselling sessions to help you with budgeting and money management, and to avoid further financial troubles when your Bankruptcy period is over.
How do I File for Personal Bankruptcy?
There are two key documents that you will need to fill out and sign to declare personal Bankruptcy.
The first is an “Assignment” document, which states that you are transferring your non-exempt assets to the Licensed Insolvency Trustee (Fuller Landau) to be distributed among your creditors. There are a number of exempt assets to make sure that you are able to maintain reasonable quality of life during your Bankruptcy period, including an allowance for a car and trade tools.
Statement of Affairs
The second is a Statement of Affairs, which lists all of your assets, liabilities, incomes, and expenses. You will also be required to provide information about the various factors that influence your financial position, such as your profession, income, and household dependents.
Accuracy is important. When filing your Statement of Affairs, make sure that your statements are accurate to the best of your knowledge. Willfully misrepresenting yourself or your assets in your Statement of Affairs qualifies as fraud, which is a serious criminal offense.
Once your documents are completed and signed, the team at Fuller Landau will file them on your behalf. For a step-by-step guide of what to expect next, see our Bankruptcy Process page.
Discharge of Debts
When your paperwork has been filed and reviewed with the Office of the Superintendent of Bankruptcy, you will have officially filed for Bankruptcy, your creditors will be notified, and your outstanding debts will ultimately be dissolved.
Talk to a Licensed Insolvency Trustee, Today
We offer a personalized approach and a full range of services to help get you out of debt. To make filing for personal Bankruptcy as painless as possible, contact us today for a free consultation.