Each year thousands of Canadians declare Bankruptcy due to job loss, divorce, illness, or financial mismanagement.
While the idea of filing for Bankruptcy might seem devastating, the process is meant to provide a second chance to honest Canadians who are down on their luck.
If you live in Coquitlam or Port Moody and are considering personal Bankruptcy, we are here to help. Our Licensed Insolvency Trustees (LIT) will explain all of your options and assist you in finding the right solution for your debt.
Who Should File For Bankruptcy?
You might consider filing for Bankruptcy if you are:
- Dealing with significant financial stress
- Receiving harassing collection calls
- Having legal action taken against you by a creditor
- Unable to take on new credit or at risk of losing your credit cards
However, Bankruptcy is not always the only way to deal with financial issues. An LIT can assess your situation and recommend if Bankruptcy is the right path forward or if you have other options.
Who Can File For Bankruptcy in Coquitlam/Port Moody?
When deciding which debt solution is right for you, your LIT will also consider if you qualify for personal Bankruptcy based on the following criteria:
- Owe at least $1,000
- Unable to pay your bills when they are due
- The value of your debt is greater than the fair market sale value of your assets
What Debts Are Eliminated in Personal Bankruptcy?
One of the main benefits of declaring Bankruptcy is it can eliminate a significant amount of your unsecured debt when you are discharged. Debts eliminated in Bankruptcy include:
- Credit cards
- Installment loans
- Lines of Credit
- Medical bills
- Payday loans
- Personal loans
- Student loans (more than seven years old)
What Debts Are Not Eliminated in Bankruptcy?
While Bankruptcy is meant to help you get a fresh financial start, it doesn’t completely clear away all debts. For instance, filing for Bankruptcy does not eliminate your secured debts, such as your mortgage or car loans. There are also a few exceptions to the types of unsecured debts that are eliminated, including:
- Child support payments
- Student loans (less than seven years old)
- Court-ordered fines or penalties
- Debts from fraudulent activities
Coquitlam/Port Moody Personal Bankruptcy – What to Expect
If you decide to file for Bankruptcy, you will work with your LIT to complete the necessary Bankruptcy forms. Your LIT will then file these documents with the Office of the Superintendent of Bankruptcy (OSB) and you will be declared Bankrupt.
Your non-exempt assets will be sold
Your LIT will sell your non-exempt assets to try and raise money to repay your creditors. While you will lose some of your assets, you won’t lose everything. There are exemptions to what can be sold as outlined by provincial and federal laws.
You will attend two financial counselling sessions
The purpose of the two financial counselling sessions is to help you better understand how you got into debt and how to prevent it from happening again in the future.
You might have to make surplus income payments
If you make more money than you need to maintain a reasonable standard of living (as defined by the OSB), you might have to pay additional money toward your Bankruptcy.
Coquitlam/Port Moody Personal Bankruptcy Alternatives
If you are struggling with your finances but still managing to pay your bills each month, Bankruptcy might not be your only option.
A Consumer Proposal is a legal process that provides many of the same benefits of Bankruptcy, including protection against your creditors. However, in a Proposal, you aren’t discharged of your debt. Instead, you and your LIT create an offer to pay a percentage of your debt, extend the time you have to pay, or both. You have up to five years to repay your debt.
A credit counsellor can help you better understand your current debt issues and provide knowledge and tools to improve your financial abilities. For instance, a credit counsellor might teach you how to create a budget and use it to pay off your debts.
Speak to a Bankruptcy Trustee in Coquitlam or Port Moody
If you are on the verge of insolvency in Coquitlam or Port Moody and thinking about filing for Bankruptcy, we can help. You can call our office at 1-888-371-8900 or fill out our online contact form to schedule your no-obligation, free consultation today. Our Licensed Insolvency Trustees will explain your options and assist you on your path to a fresh financial future.