Personal Bankruptcy

If you feel your bills are piling up, are going unpaid and you are wondering how you are going to manage, give us a call to get some advice.

Personal Bankruptcy can be for people facing debt that feels overwhelming.

When you file for bankruptcy, debts are legally “stayed” meaning, all payments, legal collections, including wage garnishments are stopped.

In bankruptcy you surrender non-exempt property and assets, in exchange all debts and bills are cancelled.

If you need financial help personal bankruptcy gives you a fresh “debt free” start.

Considering bankruptcy may leave you feeling overwhelmed, but there are many benefits:

• you get a fresh start
• debts are wiped out
• collection calls, garnishments and legal actions are stopped
• working towards rebuilding your credit rating in as little as 9 months

Personal bankruptcy benefits are immediate, with long term benefits as well to you and your family. The stress in your life is reduced once you make the decision to work with a Trustee and do something about your debts and financial issues.

Tax debt, credit card debt, certain student loans and all unsecured debt are cleared in bankruptcy.

★★★★★ I made an appointment to speak with Kelly who was non-judgmental and explained what my options were and how she could help us. Kelly helped us file for bankruptcy stopping the garnishee and creditor phone calls. I only wish we’d called sooner, Many thanks! J. Matherson, Oshawa.

In bankruptcy you do not lose all of your possessions.  If you file for bankruptcy you keep your personal belongings including:

• all personal clothing
• furniture & appliances up to a value of $14,180.00
• motor vehicles to a value of $7,117.00
• tools & equipment for work $14,405.00
• farming equipment to $19,000
• pension plans, certain life insurance policies and all RRIF, RSPS and RRSP except for contributions made in the previous 12 months

Exemptions can change within the Execution Act from time to time.

You qualify to file for personal bankruptcy if you are  unable to manage your debt as it comes due or are considered insolvent, meaning:

• you owe more than $1,000
• you are unable to pay debts when due
• debts are more than the value of your assets
• you reside in, or have a business or property in Canada

Anyone may file for bankruptcy in Canada who resides in, or has a business or owns property in Canada.

★★★★★ Thank you for the help, I suffered some major setbacks, which made my debt problems worse.  When my paycheque was garnished, I figured I had to do something.  Called Yanchdey and they got me out of debt, the feeling of relief was great. Robert Jarvis, Oshawa

Before you consider bankruptcy, let’s have a discussion about your finances first.

When you call our offices you will speak to an insolvency trustee, who will discuss your concerns surrounding your debt.

The trustee will be able to tell you the best options for you, and discuss alternatives such as:

• Consumer proposals
• Financial counselling
• Consumer consolidation loans

Consumer proposals for example, can be a better solutions in some cases and where you keep assets instead of losing them.

We are here to help, give us a call today at 905‑427‑6647.

In a personal bankruptcy, the law requires the bankrupt to surrender some assets to the trustee.

The trustee sells the assets and distributes the funds to any creditors.

In bankruptcy assets are;

• vehicles over $7,117.00 in value
• furniture & appliances over $14,180.00 in value
• tools of the trade over $14,405.00
• RESPs, TFSAs, monies in any savings or bank accounts
• insurance policies (with exceptions)

Most people considering bankruptcy have exhausted any cash they may have trying to manage their debt load. The effect on cash accounts is minimal and in a personal bankruptcy people keep their personal belongings.

We invite you to speak to one of our trustees about your debts. We provide government licensed trustees to help you with your personal finances.

Wage Garnishments:  How bankruptcy stops wage garnishments
Bankruptcy Advantages:  The benefits & disadvantages of bankruptcies
Bankruptcy FAQs:  Questions answered about bankruptcy

Bankruptcy is for individuals, allowing for financial debt relief and counseling, while treating creditors fairly.