What's it like to file bankruptcy in Ontario?

Monday, October 16, 2017 - 22:09

Bankruptcy


When a person files for personal bankruptcy it is typically a final course of action for an individual in financial difficulty. Your Licensed Insolvency Trustee will review your situation and recommend a course of action.  If your debt cannot be resolved through other options like a consumer proposal, we may recommend Bankruptcy. It is a legal process legislated under the Bankruptcy and Insolvency Act within Canada, and is designed to protect you from being bound forever by debts you are unable to repay.

The decision to file for personal bankruptcy is likely a stressful one. We will support you through the entire process, and will ensure you fully understand the various steps involved.

If you are filing for personal bankruptcy for the first time, here is an overview of what to expect during the process:

Initial Consultation
Meeting with an Licensed Insolvency Trustee at Welker & Associates is free. Together, we will discuss your circumstances, help you understand your options, and determine your best course of action for debt relief. If you decide to file for personal bankruptcy, we will serve as your Licensed Insolvency Trustee throughout the duration of the process.

Application Form and paperwork
We will help you properly complete all the required forms and submit them on your behalf.

No More Creditors
Going forward, we will deal with creditors and collection agencies on your behalf. Your debts will be frozen at this point, and no more interest will accumulate.

Asset Review
We will review all personal asset exemptions, assets that are protected from creditors, for which you are eligible.

Monthly Reporting and Payments
During your bankruptcy period, you will be required to report your income on a monthly basis and provide proof of your income (such as paystubs). We will provide you with the monthly reporting forms. 

Counselling
You are required to attend two mandatory counselling sessions where you will be provided with valuable information on money management and household budgeting.

Discharge
Once your bankruptcy is over, you will be officially discharged from bankruptcy. You will have no further responsibility for the debts listed on your bankruptcy subject to certain exceptions.

If you're worried about your debt load, it doesn't hurt to set up a free, no-obligation consultation with one of our Licensed Insolvency Trustees.

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