What to Expect When You File for Personal 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 (LIT) will review your situation and recommend a course of action.  If your debt cannot be resolved through other options like 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 debts you are unable to repay.

The decision to file for personal bankruptcy is likely a stressful one. The highly qualified LITs at Boale, Wood and Company Ltd. 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 LIT at Boale, Wood & Company Ltd. 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 LIT 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, 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 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). The LIT will provide the monthly reporting forms. 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.

Discharge

Once your bankruptcy is over, you will be officially discharged from Bankruptcy (see our article on bankruptcy discharges).  You will have no further responsibility for the debts listed on your bankruptcy subject to certain exceptions.

The experienced professionals at Boale, Wood & Company Ltd. understand the stress that financial difficulty can cause.

We know that realizing that you are experiencing financial problems is a hard thing to do for most people and sometimes you feel helpless. But instead of feeling helpless, let us help you gain control of your debts and understand your options.

Start by scheduling a meeting with us to discuss the solution best suited to your situation. This meeting is free and there is no pressure or obligation for you to make a decision right away.

We have the expertise to find the solution best suited to you.

Call us, it’s not too late. (604) 605-3335.