Canadian Bankruptcy Trustees. Canadian Bankruptcy Information.
Our website's purpose is to provide information that will help Canadians get a fresh financial start, and to provide resources to assist in building a secure financial future! The directory on the right will answer many of your questions about bankruptcy, proposals, credit, credit bureaus and re-establishing your credit after you get your financial problems under control.
Our Bankruptcy Trustees are available to assist you in identifying your options and forming a plan to get you a fresh financial start. In many cases there are options other than bankruptcy, including proposals, credit counselling, third party settlements with creditors, and refinancing. Our Bankruptcy Trustees are knowledgeable, helpful and friendly. We understand the overwhelming stress that severe financial problems can bring. We also know that picking up the phone and calling us is a hard thing for most people to do.
Our goal is to make this difficult time as easy and pleasant as possible.
We'll start by scheduling a meeting with you to discuss the solutions best suited to your situation. This meeting is free, and it's confidential.
We'll help you make the right decision
so you can regain control of your life.
The cost of a bankruptcy is set by the Government. Our Bankruptcy Trustees have payment terms available.
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#1 - In the event bankruptcy or a proposal is your best option, you are allowed to keep the equity in assets set by your province or territory.
Equity is the excess that the value of an asset has over any charges or encumbrances against that asset. For example, if you have a car worth $10,000 and there is a $6,000 secured debt against it then your equity in the car is $4,000. In Northwest Territories the exemption for a car is $5,000 so in this example you are entitled to the equity of $4,000 and the unsecured creditors cannot take this.
The bankruptcy exemptions (assets you can keep) are as follows:
#2 - Filing bankruptcy or a proposal will stop actions by creditors such as:
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Collectors calling you for payment;
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CRA, income tax collections;
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Garnishee of your pay;
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Creditors seizing your assets.
#3 - Filing bankruptcy will erase ALL Debts except the following:
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Fines imposed by a Court;
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Money owing for things stolen;
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Things obtained by misrepresentation;
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Alimony or maintenance payments.
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Award of damages by a court for intentionally inflicting bodily harm or sexual assault.
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Student loans if bankruptcy is filed prior to or within ten years after the finish of studies.
#4 - Most people in bankruptcy are discharged or out of bankruptcy in 9 months, at which time all debts (except for the ones in #3 above) are erased.
#5 -
Most of the people who file bankruptcy or a proposal are good, honest, hard-working people who file as a last resort after months or years struggling to pay the bills left over from some catastrophic event or set of circumstances. It can be because of a divorce, the loss of a job, a failed business venture, a serious illness, or some family emergency, or because the person honestly and mistakenly fell into debt at a young age before they knew better, and before they knew anything about budgeting or how to manage money.
Canada's bankruptcy laws are designed to permit an honest but unfortunate debtor to obtain a discharge from his or her debts while treating creditors equally and fairly.
In 2009 more than 115,000 individuals in Canada filed for personal bankruptcy or filed a bankruptcy proposal. |
Please note that this general information does not replace the specific details that need to be discussed in a meeting with a Bankruptcy Trustee. Some other relevant issues include co-signers, the effect on your spouse, separation between spouses, surplus income guidelines, stay of proceedings and how it works in your situation, and income tax consequences.
Important Reasons for you to use a Trustee in Bankruptcy for your Debt Relief Options
Cost: In most cases, It will cost you less to use a trustee than other Debt Consultants since trustees have their fees regulated by the government.
Quicker Way to Rebuild Your Credit Rating : Filing a Bankruptcy or a Proposal is often a quicker way to rebuild your credit rating than using a credit counsellor. So long as you are on any kind of payment plan the credit bureau will record this fact. Using a credit counsellor will not give you a better credit rating faster. In fact, you will likely take longer to re-establish a good rating and pay much more. More information about credit counsellors and trustees..
Full Range of Debt Relief Options: Trustees in bankruptcy are the only debt professionals, that can provide a full range of debt relief options and the only debt professionals that can guarantee protection from your creditors.
A person has to use a trustee if he or she goes bankrupt. However, trustees are not just for filing bankruptcy. They are also Professional Debt Consultants and can make arrangements with your creditors on your behalf; provide debt counselling; negotiate settlement agreements and help you make a proposal to your creditors to avoid bankruptcy.
Integrity: If a trustee feels you need the protection of independent legal advice the trustee will refer you to an insolvency lawyer. In some cases the trustee will be able to advise you of a solution that will cost you nothing and have you avoid bankruptcy. Trustees are guided by a stringent code of ethic and will give you the best advice possible even if it means you do not use their services.
Training and Expertise: Trustees are the most highly trained and educated Debt Consultants in Canada. Almost all trustees have both an accounting designation and a university degree. In addition, all must complete and pass a rigorous three-year bankruptcy and law course and be investigated by the RCMP before being granted a trustee license. Ongoing professional development is mandatory.
Your Protection: When dealing with a trustee you are protected firstly by the fact that the federal government regulates trustees and secondly by the stringent code of ethics to which all trustees are subject. Trustees in bankruptcy are the only debt professionals, in Canada, that are regulated by the government
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Frequently Asked Questions - FAQs
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