If your debt has reached a level that seems impossible to pay off, it’s important to know that you are not alone. Consumer debt has reached an all-time high in Ontario and an increasing number of people are unable to keep up with their financial obligations. Thankfully, Bankruptcy is an option to wipe the slate clean for honest people who are in crisis with unmanageable debt.
Filing for personal Bankruptcy is a legal process that must be completed with the assistance of a Licensed Insolvency Trustee (LIT). It will immediately put an end to all collection actions and protects you from being bound to a debt that you can never hope to repay.
Bankruptcy may be the best option for you if you are experiencing one or more of the following:
- Spending more than you earn
- Inability to pay your bills (or only making partial payments)
- Using one credit card to pay another
- Property seizures
- Wage garnishments
- Harassing phone calls from creditors and/or collection agencies
- A notice of legal action to collect owed money
The Necessary Steps to Filing for Personal Bankruptcy in Ontario
There are several steps involved when filing for personal Bankruptcy, in Ontario. Here’s what you should know:
- First, you need to contact a Licensed Insolvency Trustee (LIT) for a consultation. This meeting will be free of charge, and together you will discuss your finances and determine if Bankruptcy is a viable option.
- Your LIT is responsible for filing all of the necessary paperwork, on your behalf. This includes the ‘Assignment’ and ‘Statement of Affairs’ document.
- All collection actions will cease immediately and interest will no longer accumulate.
- You will surrender certain assets, with the exception of exempt assets up to a certain dollar value (such as household furnishings, primary owned residence, car, etc.).
- Within five days of submitting the paperwork, your creditors will be notified that you have filed for Bankruptcy.
- You will be required to attend two credit counselling sessions with your LIT that will provide guidelines on how to budget and rebuild your financial situation.
- Throughout the duration of your Bankruptcy, you may be required to pay a small monthly amount to your LIT, for the benefit of your creditors. This amount is always much less than your original outstanding debt. You will also be required to submit monthly budgets and report your income.
- At the end of your Bankruptcy period (from 9-21 months for first-time filers), you will be officially discharged from Bankruptcy.
Filing for Bankruptcy May Not Be Your Only Option
If you are struggling with debt, Bankruptcy may not be the only option! Sometimes, all you need is practical advice through credit counselling – or, perhaps a debt consolidation or a Consumer Proposal will make more sense for you. When you meet with a friendly and knowledgeable Licensed Insolvency Trustee at Fuller Landau, we will take the time to understand your unique situation, assess your current finances, fully explain your options, make recommendations, and help you take the next steps toward financial freedom.
Our Licensed Insolvency Trustees have over 25 years of experience helping individuals overcome their financial burdens. Find out for yourself why we’ve earned a 5 Star Google Rating – call today to schedule a free consultation. It’s time for a fresh start and a FULLER life.