2. Table of Contents
• Page 3: What is Bankruptcy?
• Page 4: Bankruptcy Calculator
• Page 5: The Insolvency Process Explained
• Page 7: What is the Bankruptcy Process?
• Page 8: When Does My Bankruptcy Discharge Take Longer Than 6 Months?
• Page 9: Does Bankruptcy Discharge All Debts?
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3. What is Bankruptcy?
• What is Bankruptcy is a straightforward question as bankruptcy is
a legal process governed by the Bankruptcy and Insolvency Act,
which is a federal law.
• One of the major tenets of Canadian bankruptcy is that an
unfortunate but honest debtor deserves a fresh financial start.
• As soon as bankruptcy is filed a Stay of Proceedings goes into
effect which stops all collection actions by unsecured creditors.
• Collection calls stop and interest stops accruing.
• Wage garnishees, in place or contemplated are also stopped.
• In the vast majority of cases a bankruptcy costs $1,800.00, which
can be paid at the rate of $200.00 a month for nine months.
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4. Bankruptcy Calculator
• Our Bankruptcy Calculator will give you the exact cost and how
long you will be in bankruptcy.
• When you receive your bankruptcy discharge all your eligible debts
are erased.
• You need to use a government licensed insolvency trustee to file
bankruptcy.
• Trustee fees are regulated by the government so all trustees
charge the same amount.
• In order to be eligible to declare bankruptcy a person must be
insolvent and must live or do business in Canada, or have
previously done so as it is possible to file Canadian bankruptcy
from abroad.
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5. What is Bankruptcy? Insolvency Explained
• To be insolvent you must:
• * Owe $1,000 or more and;
* Be unable to pay your debts as they become due
to be paid.
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6. What is The Bankruptcy Process?
• The bankruptcy process almost always begins with a voluntarily assignment into
bankruptcy although it is possible for someone to be petitioned into bankruptcy
by their creditors.
• You will work with a Licensed Insolvency Trustee who will administer your
bankruptcy, file all necessary paperwork and deal with your creditors on your
behalf.
• As an officer of the court, the trustee does not work for you or your creditors,
although the trustee will ensure that both you and your creditors are treated
fairly.
• This outline shows the steps involved in a typical straightforward bankruptcy.
• Your trustee will notify your creditors of your bankruptcy, hold the meeting of
creditors (if one is requested) and will give you your two required bankruptcy
counselling meetings that are part of your bankruptcy duties.
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7. What is The Bankruptcy Process?
• If you have any assets you have to surrender because they are not
protected by the bankruptcy exemptions the trustee will hold
these assets until they can be sold and then will hold the funds
from the sale in trust for distribution to your creditors who have
submitted a valid Proof of Claim on debts that you owe to them.
• You must complete all of your bankruptcy duties and make all
required payments to your bankruptcy estate in order to receive
your bankruptcy discharge.
• After you have received your bankruptcy discharge a record of
your bankruptcy will remain on your credit report for up to 7 years
although you will be able to rebuild your credit after bankruptcy
and often, bankruptcy is the only way a person with high debts
and poor credit can get a fresh start needed to rebuild your credit.
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8. When Does My Bankruptcy Discharge
Take Longer Than 9 Months?
• A bankruptcy discharge usually occurs 9 months after
you filed bankruptcy although there are some
circumstances that will increase the length of time you
will be bankrupt before you receive your discharge.
• The conditions that increase the time until you receive
your bankruptcy discharge include:
* You have already been bankrupt before;
* You have surplus income;
* You do not complete all of your required bankruptcy
duties.
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9. Does Bankruptcy Discharge All Debts?
• When you receive your bankruptcy discharge all
your eligible debts are erased.
• Secured debts cannot be eliminated in bankruptcy
unless the security (Such as a vehicle that is leased or a
home that is mortgaged.) is given up.
• The following debts are not erased by a bankruptcy: 1)
child support payments, 2) alimony payments, 3) court
ordered damages and awards, 4) debts obtained by
fraud and 5) student loan debt if you have ceased being
a part time or full time student less than 7 years ago.
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