CréditSOS.ca
PERSONAL BANKRUPTCY

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    WHAT IS A PERSONAL BANKRUPTCY? 

    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? 

    1. This procedure releases a debtor from unsecured debts, except for debts that are non-dischargeable under section 178 of the BIA, including : 
    3. Alimony arrears  
    4. Fines  
    5. Debts arising from fraud (whether intentional or unintentional on your part).  
    6. Overpayments of social assistance and employment insurance (in most cases).  
    7. 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? 

    1. We will explain to you during a first meeting if your assets are exempt from seizure, such as : 
    3. Real estate, up to $7,000 of market value
    4. Clothing
    5. The working tools
    6. In some cases, it is possible to keep your car and house, subject to the rights of secured creditors.
    7. Most life insurance policies
    8. RRSPs, subject to certain conditions
    9. Others

    ADVANTAGES OF A PERSONAL BANKRUPTCY 

    1. Allows you to erase all your debts* and get a fresh financial start
    2. Protects you from any procedure including wage garnishment
    3. You obtain budget assistance consultations by the trustee or a qualified counsellor.
    4. Certain pre-bankruptcy tax returns are prepared by the trustee in insolvency.
    5. Certain assets are exempt from seizure
    6. Protects you from legal proceedings
    7. In some cases, you may be able to keep your car, house and RRSPs.

    Consultation with a licensed insolvency trustee 

    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!