What to Expect When You File for Personal Bankruptcy
Personal Bankruptcy is typically a final course of action for an individual in great financial distress. Together with your Licensed Insolvency Trustee (LIT), you will review your unique personal situation. If your debt cannot be resolved through other options like credit counselling, debt consolidation, or a Consumer Proposal, your LIT 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 a debt you are unable to repay.
The Process of Filing for Personal Bankruptcy
The decision to file for Personal Bankruptcy is likely a stressful one. A qualified LIT 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:
- Consultation: Meeting with a Licensed Insolvency Trustee at Fuller Landau Debt Solutions is free of charge. Together we will discuss your personal 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 LIT throughout the duration of the process.
- Paperwork: We will help you properly complete all the required forms and submit them on your behalf.
- No More Creditors: Going forward, your LIT 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 exemptions for which you are eligible, and will assist in determining what will happen to your assets.
- Monthly Payments: During your Personal Bankruptcy period, you may be required to pay a small amount on a monthly basis to your LIT. This amount would be significantly lower than your original debt.
- Counselling: You are required to attend two mandatory counselling sessions with your LIT. We will provide valuable information on money management and household budgeting. You will also be required to report your income on a regular basis.
- Discharge: Once your Bankruptcy period is over, you will be officially discharged from Bankruptcy. Any monthly Bankruptcy payments will cease and you will have no further responsibility for the debts listed on your Bankruptcy application.
To learn more about filing for Personal Bankruptcy or any other debt-relief options that may be right for you, schedule a free consultation with one of our friendly and qualified Licensed Insolvency Trustees. It’s time to get a fresh start and enjoy a FULLER life.