Feeling overwhelmed by your debt? You’re not alone. Each year, thousands of Canadians file for personal Bankruptcy. While you may not like the idea of declaring Bankruptcy, it can provide the second chance you need to reclaim your financial footing.
If you’re considering personal Bankruptcy in Burnaby, a Licensed Insolvency Trustee (LIT) can explain your debt relief options and help you decide on the right path forward.
How a Bankruptcy Trustee in Burnaby Can Help?
Dealing with debt can feel scary and isolating, especially if you don’t want to share your financial issues with your friends or family. A Licensed Insolvency Trustee can act as a supportive partner, helping you through every step of your debt journey.
Licensed Insolvency Trustees are debt professionals. Regardless of the amount or type of debt you have, an LIT can help you create a debt relief plan. An LIT is the only professional in Canada licensed to administer the full range of debt help options, including Bankruptcies and Consumer Proposals.
Your initial consultation with an LIT is always free. In this meeting, your LIT will assess your financial situation and explain the debt option available to you.
Filing For Bankruptcy in Burnaby
If you and your LIT decide that personal Bankruptcy is the right choice, you will work together to complete the Bankruptcy documentation. As soon as your LIT files your documents with the Superintendent of Bankruptcy, you are formally declared Bankrupt.
How much debt do you need to file for personal Bankruptcy?
The minimum amount of debt you need to file for Bankruptcy is $1,000. To qualify for Bankruptcy, you also have to be insolvent (unable to pay your bills when they are due), and your debt has to exceed the fair market value of your assets. You also must reside, do business, or own property in Canada.
What will you lose in Bankruptcy?
Many people are worried they will lose everything if they file for Bankruptcy. While your LIT will sell some of your assets to raise money to repay your creditors, you won’t lose everything in this process. There are exclusions to what can be sold as outlined in provincial and federal laws.
Benefits of filing for personal Bankruptcy in Burnaby
Filing for Bankruptcy releases you from your debts and provides a fresh financial start.
- You can stop making payments directly to your creditors
- Any wage garnishment will stop
- Collection calls will stop
- Creditor lawsuits against you will stop
Your responsibilities in Bankruptcy
During Bankruptcy, your LIT will take the lead on completing documentation and communicating with your creditors. You also have responsibilities, including:
- Disclosing information about your assets and debts to your LIT
- Telling your LIT about any property that was sold or transferred in the past few years
- Handing over your credit cards to your LIT
- Attending two financial counselling sessions
- Advising your LIT in writing if your address changes
- Making your payments
What debts are eliminated in Bankruptcy?
When you are discharged from Bankruptcy, you are legally released from your obligation to repay certain types of debts. Only unsecured debts are eliminated in Bankruptcy, secured debts such as your mortgage or car loan are not eligible.
Examples of unsecured debts that can be discharged in Bankruptcy include:
- Credit cards
- Installment loans
- Lines of credit
- Payday loans
- Personal loans
- Student loans (if you’ve been out of school for seven years or more)
Other Debt Relief Services
Bankruptcy is often not your only option when dealing with debt. Your LIT can explain the different debt relief services that may be available to you, including:
In credit counselling, your LIT will help you understand how you got into debt and provide education and tools to assist you in eliminating your debt. For instance, your LIT might teach you how to create a budget and how to use it to get out of debt. In a counselling session, your LIT can also explain the different debt service options and recommend if you need to consider a Consumer Proposal or Bankruptcy.
In a Consumer Proposal, you and your LIT create an offer to your creditors to pay a percentage of the debt you owe, extend the time you have to pay, or both. You then have a maximum of five years to repay your debt. Similar to a Bankruptcy proceeding, an LIT is the only professional who can administer a Consumer Proposal.
Contact a Bankruptcy Trustee in Burnaby
If you’re dealing with insolvency in Burnaby and you’re considering Bankruptcy, contact an LIT at Allan Marshall & Associates today. One of our experienced LITs can assess your finances and help you determine the right debt solution. In many situations, Bankruptcy might not be your only option. For a no-obligation, free consultation, give us a call at 1-888-371-8900 or fill out our online contact form.