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What to know about filing for Bankruptcy

May 10, 2016

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Financial difficulties can arise for many reasons, such as marital separation, job loss, illness, or family emergencies. Because of this, it is not surprising that in 2015 over 110,000 individuals filed for bankruptcy to deal with their financial stresses.

Bankruptcy laws are designed to provide honest individuals relief from their debt load while treating creditors equally and fairly. A bankruptcy is available to individuals looking for a fresh start.

a Brighter Future

What will happen to my debts and assets?

When an individual files for bankruptcy, debts are frozen and creditors will no longer be eligible to contact you. In addition, any wage assignments or garnishments will be lifted. Your Licensed Insolvency Trustee will contact creditors on your behalf, which allows you to focus on the things that are most important to you.

Some of your assets cannot be touched under the exemption rules of British Columbia. When you sit down with a Licensed Insolvency Trustee they will take the time to explain the effect a bankruptcy may have on you and your assets.

What will be my monthly payment?

Your required bankruptcy payment is based on your monthly net income. Your Trustee will calculate your bankruptcy payment and will make your payment arrangement based on what you can afford. To get an idea of your bankruptcy payment, take a look at our online debt calculator. Rest assured, Licensed Insolvency Trustee fees are regulated by the federal government.

The length of bankruptcies can vary depending on your income and if you have filed for a previous bankruptcy at any time. This is something one of our professionals can discuss with you in detail.

Once you have completed your required duties within the prescribed time frame, you will be eligible to receive a certificate of discharge. This will extinguish your debt load in full, with the exception of a few non-dischargeable debts. Non-dischargeable debts include:

  • Court fines/penalties
  • Spousal or child support
  • Student loans if your last date of study is less than 7 years
  • Debts incurred as a result of fraud or misappropriation
  • Court awards for damages as a result of bodily harm or sexual assault

As every individual’s situation is unique, it is important to understand that not every bankruptcy is the same. Each individual’s bankruptcy differs based on personal circumstances. It is important to speak to a Licensed Insolvency Trustee to determine exactly how a bankruptcy would affect you.

It is our belief that you should explore all of your debt management options before making a decision. Our advisors can provide you with a free, no obligation consultation – explaining in detail each option that may be available to you.

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