Bankruptcy - Sometimes it's your only option

The Truth About Bankruptcy and Debt Consolidation

Often we are faced with towering debts that may appear unconquerable. And often times still, the challenge may be just that. Circumstances for financial hardships are as plentiful as the individuals who face them. It is not always a matter of blame. The need for a fresh start may be overwhelming.

In the search for relief of financial burdens, Canadians have steadfastly been heading to the doors of Trustees In Bankruptcy. And while bankruptcy protection may at times be the best remedy for situations of financial destitution, not all cases of economic hardship may warrant such a drastic resolution. The consequences of such a step must very carefully be reviewed and all other options must be considered. Trustees are aware that they must thoroughly review with the consumer other options prior to initiating the legal work associated with bankruptcy proceedings. It is your responsibility to find a public Trustee who is fully compliant to this legislation. There are often misconceptions about the process of bankruptcy. The following is not a misconception: Bankruptcy is the legal process where assets of an individual or company are liquidated and the proceeds are given to creditors who are owed money. (Some assets are exempt from liquidation, depending on the province)

Office of the Superintendent of Bankruptcy Canada

The above may seem overly simplistic, but it is the core of bankruptcy proceedings. The effects are numerous and severe. They may range from the inability to obtain ANY recognized forms of credit, to the inability to obtain countless types of employment. Lesser known consequences are the disqualification from being able to sponsor new Canadians as well as not being able to be bonded. All effects of bankruptcy carry with them long-term distress. At times, the remedy may be worse than the illness. Be sure to fully consider all options prior to this decision, as this option too most often comes with a 4-digit service fee. Consider further that bankruptcy proceedings are PUBLIC. Under this resolution, your financial affairs are no longer your private matters. Creditors would prefer to settle their debt, as opposed to having their customer cornered into bankruptcy.

Bankruptcy as it applies to the Bankrupt / Debtor

Bankruptcy as it applies to the Creditor

Bankruptcy Exemptions by Canadian province

Information for the Debtor/Bankrupt

A debtor is a business or person that is unable to meet debt obligations. A bankrupt is a business or person that has declared bankruptcy.

Both the debtor and bankrupt's primary duties are to:

  • Attend the first meeting of creditors (if a meeting is requested by the creditors)
  • Attend two credit / debt counselling sessions (for bankruptcy and consumer proposals)
  • Advise the trustee in writing of any address changes
  • generally assist the trustee in administering the estate or proposal

Bankruptcy information for Creditors

Creditors will be provided with, among others, the following two documents:

  • Statement of Affairs — The bankrupt's financial statement or balance sheet of assets and liabilities showing the estimated value of assets and the names and addresses of creditors and the amounts owed. This is usually presented at the beginning of the process.
  • Statement of Receipts and Disbursements — A statement detailing the receipt and disbursement of funds, interest received, fees charged by the trustee, all dividends distributed to creditors and particulars of property that is not sold. This is usually presented at the end of the process.

Bankruptcy Exemptions by Province

When a person files an Assignment in Bankruptcy, a portion of their take-home pay may be payable to the Trustee for the benefit of all creditors. The actual amount payable depends on several factors, such as the take-home pay of the family unit, the number of people in the family and whether the family has non-discretionary expenses such as child care or child support. Any questions you have with respect to surplus income can be addressed with us if you require clarification.

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Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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