Filing for bankruptcy is nothing to be ashamed of. Instead of looking at bankruptcy in BC Canada as a failure, think of it as a way to have a fresh start. When they are young, many people do not understand the importance of having good credit and paying bills on time. It is easy to find yourself in a lot of debt in a short period. Filing for bankruptcy can be an overwhelming experience that can cause a lot of stress. You do not have to go through the process of filing for bankruptcy alone. At Smythe Insolvency, our team is made up of financial experts who can lend a helping hand through the process of filing for bankruptcy. Our experts can answer any questions that you may have about how to file bankruptcy and how it will affect your future.
Consolidating your Debt
No one should have to file bankruptcy by themselves. You could end up missing debt that you could have filed bankruptcy on. At Smythe Insolvency, we can help you collect all of your debt together so that you are not stuck paying bills you no longer can afford. We can help you calculate your debt and consolidate it. We do not only serve individuals. We also serve businesses. If you have found yourself in crippling debt that you cannot pay, there has never been a better time to reach out to our experts at Smythe Insolvency.
When to File Bankruptcy
If you have already filed bankruptcy in the past, you will need to wait a period of six to eight years before you can file again. If you have found yourself in a mountain of debt that you cannot get out from under on your own, you may want to consider filing for bankruptcy. At Symthe Insolvency, our team can help protect as many of your assets as possible under local law. It is possible to keep your life together even if you have to file bankruptcy. It is our goal at Smythe Insolvency to help individuals and businesses find debt consolidation solutions.
Licensed Insolvency Trustees Working for you
At Smuthe Insolvency, our team of licensed insolvency trustee can help you through the process of filing for bankruptcy. A license insolvency trustee is considered to be an officer of the court who is present to protect your legal rights and the legal rights of your creditors. Trustees are highly trained and educated in all matters regarding bankruptcy. They can directly deal with your creditors so that you do not have to. A licensed insolvency trustee can take some of the stress off of your shoulders when you are filing for bankruptcy.
Contact Symthe Insolvency
If you are filing for bankruptcy in BC Canada, you should contact our team at Symthe Insolvency. Our team can’t make your debt go away completely, but we can help fight to protect your assets while filing bankruptcy on the majority of your debt. Let us put our expertise to work for you.Bankruptcy Bc Canada
If you are contemplating bankruptcy, you will undoubtedly have a lot of questions. However, there are some people in Canada that are unable to pay off all of their tax debts as laid out by the Canada Revenue Agency (CRA) When this is the case, it might be your best option to file for bankruptcy to get out from under the significant financial hold that it has on you. Instead of going it alone, you could talk with a professional about the best way to navigate the CRA bankruptcy process.
Should I File Bankruptcy For Tax Debts?
It is often misconceived that tax debts, whether they provincial or owed to the CRA, are not going to go away after you go through bankruptcy. However, this is far from the truth. There are only a few kinds of debts that can survive bankruptcy, and the good news is that all tax debts tend to go away after the bankruptcy is over with. You will simply have to confirm whether or not there have been any liens on your assets put in place by the CRA.
What Happens If I Owe CRA A Lot Of Money?
If you are not able to pay the full amount that you owe to the CRA, you can take action by getting in touch with them or having a lawyer take care of it on your behalf. The last thing that you want to do is ignore your tax debts, but you may have a few viable options that are available to you. In many cases, the CRA will work with you to find a good way to resolve your tax debt. In some instances, people have been able to qualify for payment arrangements and other methods of paying down the money that is owed.
File Sooner Than Later
When it comes to a CRA bankruptcy, it is always best the sooner that you file. Your tax debts are not going to simply go away on their own so that the last thing you want to do is wait too long and you could end up having your bank accounts and other assets frozen. You might also be surprised to know that if you have a business, the CRA has been known to contact your major customers with a notice that directs them to pay them rather than you. The best way that you can avoid any nasty issues from arising is to pay off your tax debts. However, if that is not possible at the time, you can work on declaring bankruptcy to help take the weight off of your shoulders.
To file, you must:
If you would like to learn more about CRA bankruptcy and how you can get help, we invite you to get in touch with us at Smythe Insolvency. We will be happy to talk with you about solutions to give you a better financial future and help you to get out of the hold that your tax debts have on you. All you have to do is contact us today to set up a time for a free consultation.
As Canadian bankruptcy trustees at Smythe Insolvency, we are frequently asked by our clients if there is an alternative to bankruptcy. The good news is that there is! The alternative we're going to talk about today is called a consumer proposal. A consumer proposal is a formal offer to your creditors where they agree to settle for less than the full amount owe them. Before any offer can be forwarded to your creditors, you must review your personal financial situation with a trustee.
A trustee can help you weight a consumer proposal vs. bankruptcy in Canada, and if you decide to go the route of a consumer proposal, the trustee will review your assets, your expected monthly income for the next 9 - 21 months, and your family budget.
With this financial information, you and your trustee can then calculate how much (if anything) will be payable to creditors if you file for bankruptcy. We need to start the calculations at bankruptcy because bankruptcy is the least amount your creditors could expect in any formal repayment plan. Therefore, this is the place to start your negotiations with your creditors.
Benefits of a Consumer Proposal Vs. Bankruptcy in Canada
A consumer proposal will always offer more to your creditors than they could expect in a bankruptcy. So, why choose a consumer proposal? There are many reasons why debtors may choose a consumer proposal, but the main reason is that some people feel better when they can pay back at least a portion of their debts.
Consumer proposals are also more flexible than bankruptcies because, once your creditors agree to a payment amount, you can pay this amount off as quickly as your financial situation will allow, and with all consumer proposals, there is no ongoing interest. Consumer proposals might also be a preferred alternative for professionals, as some professionals have personal limits in their licensing if they are personally bankrupt. This is generally not the case if they've only filed a consumer proposal.
The other reason why a consumer proposal is better than bankruptcy is that your credit score will be better than it would be if you filed for personal bankruptcy. Let's consider an example of what a consumer proposal may look like. Let's say you owe $30,000 in credit card debt.
Understanding the Advantage of a Consumer Proposal Over Bankruptcy
You could offer anything to your creditors, but let's assume for this example that you decide to offer $300/month to your creditors for 36 months or $10,800 over three years. Our trustee would help you put this offer together and send it to your creditors. Your creditors will have 45 days to decide whether or not to accept your proposal or make a counter0offer. If at least 50% of your creditors vote to accept your proposal, then the proposal itself is binding on all of your creditors, even those that did not vote.
Contact Smythe Insolvency today, and we'll help you understand the differences between a consumer report and bankruptcy.