In Canada, you can only file for bankruptcy through a Licensed Insolvency Trustee. We are licensed by the Office of the Superintendent of Bankruptcy (the “OSB”).
When a debtor is unable to meet their financial obligations and does not have the ability to file a proposal, then bankruptcy may be an option they may want to consider.
By filing an assignment in bankruptcy, you are immediately given protection against your creditors, and garnishments for most creditors stop (child support and spousal support payments may continue to garnish wages for ongoing Court ordered payments).
Tax debt (both personal and business taxes), payday loans, credit cards, unsecured lines of credit, overdrafts, highway toll charges, personal loans from family and friends, shortfalls on mortgages when a property is sold by a mortgage company, and most lawsuits are no longer payable after you discharge from a bankruptcy.
You will be required to make a payment into your bankruptcy, and this amount is determined by reviewing your personal situation at both the initial appointment, and at various times throughout the bankruptcy. Every person’s situation is unique, and not everyone is required to pay the same amount into a bankruptcy.
Typically, a bankruptcy will last nine months for a first-time bankrupt, and twenty-four months for the second time bankrupt. However, there are exceptions to this, and this will be further discussed in person.
There are certain debts that cannot be discharged (i.e. you still have to pay after the bankruptcy is finished) including, but not limited to, child support, spousal support, and student loans (with exceptions).
When you file a bankruptcy, the creditors begin contacting the Licensed Insolvency Trustee’s office, and you no longer have to deal with the collection calls.