Bankruptcy is a legal process that leads to the discharge of your debts*. The legal terms used are an assignment in the case of voluntary bankruptcy, and receivership when it results from a petition by your creditors.
DOES BANKRUPTCY DISCHARGE ALL DEBTS?
- This procedure releases a debtor from unsecured debts, except for debts that are non-dischargeable under section 178 of the BIA, including :
- Alimony arrears
- Fines
- Debts arising from fraud (whether intentional or unintentional on your part).
- Overpayments of social assistance and employment insurance (in most cases).
- Some student loans
Consult us to check if there are any exceptions among your debts. It is important to note that although the above exceptions are usually non-dischargeable, these debts must be reported to the licensed insolvency trustee.
WHAT WILL HAPPEN TO MY HOME, CAR AND OTHER PROPERTY?
- We will explain to you during a first meeting if your assets are exempt from seizure, such as :
- Real estate, up to $7,000 of market value
- Clothing
- The working tools
- In some cases, it is possible to keep your car and house, subject to the rights of secured creditors.
- Most life insurance policies
- RRSPs, subject to certain conditions
- Others
ADVANTAGES OF A PERSONAL BANKRUPTCY
- Allows you to erase all your debts* and get a fresh financial start
- Protects you from any procedure including wage garnishment
- You obtain budget assistance consultations by the trustee or a qualified counsellor.
- Certain pre-bankruptcy tax returns are prepared by the trustee in insolvency.
- Certain assets are exempt from seizure
- Protects you from legal proceedings
- In some cases, you may be able to keep your car, house and RRSPs.
We understand that each situation is unique, hence the importance of consulting a licensed insolvency trustee in order to fully understand the implications of making an assignment. Our consultations are free of charge. Contact us for more information!