When you finally decide you can’t climb out of debt on your own and need to meet with a trustee, you will likely have a lot of bankruptcy questions to ask. For this reason, we have created a Frequently Asked Questions section on our website dedicated to bankruptcy questions,
In our initial meetings, we usually hear many of the same questions. Here are a few that we get asked most often:
Will I lose everything if I go bankrupt?
No. A goal of the bankruptcy legislation is that individuals filing personal bankruptcy get a fresh start. Therefore, certain assets are deemed exempt from seizure by creditors.
What will I have to do if I go bankrupt?
– Attend two credit counselling sessions
– Provide the trustee with monthly income and expense reports
– Provide the trustee with information for your pre and post-bankruptcy income tax returns
– Pay the bankruptcy administration fees or required surplus income payments
How will bankruptcy affect my spouse?
You and your spouse are two separate legal entities. Nothing you do can affect your spouse’s credit rating or his/her legal obligation to pay his/her creditors. However, if your spouse has co-signed any of your debts, your filing personal bankruptcy won’t prevent the joint creditors from pursuing your spouse.
Many people are slightly uneasy or nervous when they first meet a trustee. We suggest that prior to meeting with us for your first visit, read the material on our website. It will most likely answer many of your questions and could put your mind at ease. If more questions arise as you go through the website, write them down! We are here to answer any questions you have, no matter how petty you think they may be. It’s important that you understand the process before filing bankruptcy or making a consumer proposal.
If you’re ready to talk about your possibilities, contact us for a free, no obligation consultation. We have offices across South Western Ontario and flexible hours to meet your needs.
