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Personal Bankruptcy Help

If you’re considering personal bankruptcy we know it can be a challenging time. The weight of having your finances out of control can be very disruptive to your quality of life. But before it gets any worse, we encourage you to reach out for help. In fact, at Sheriff Sole & Madej Inc. we’ve provided expert and confidential personal bankruptcy help to thousands of Canadians.

Personal Bankruptcy Help

What is Bankruptcy?

Bankruptcy is a debt relief option that can help Canadians deal with their financial problems. If the value of your debts exceeds the value of your assets, then Bankruptcy could be the best way to effectively eliminate your debt.

Am I eligible to file a bankruptcy?

If you owe at least $1,000 and are struggling to maintain your monthly expenses you could be eligible to file a bankruptcy. It is wise to speak with a bankruptcy trustee who will help you learn the eligibility requirements for declaring bankruptcy in Ontario.

What happens to my house, vehicles, RRSPs and RESPs?

Once you file a bankruptcy, your assets are put in the hands of your Licensed Insolvency Trustee. While certain assets are protected by law, there are some assets that may need to be surrendered or repurchased. In most cases we are able to work with you so that you can maintain the assets that are important to you and your family.

How will declaring bankruptcy help me?

Once you file for bankruptcy all interest charges, collection calls, wage garnishments and any legal action will stop. Since a Licensed Insolvency Trustee will act on your behalf, you do not need to contact or deal with your unsecured creditors directly.

How long will I be in the bankruptcy process?

The length of time is determined based on whether this is your first or second bankruptcy and whether you are required to make monthly surplus income payments. The surplus income payment is an amount paid monthly into a bankruptcy and is based upon your income and personal family situation.  The amount is calculated according to a government index/threshold.

  • For a first time bankrupt with low income (no surplus) the length of bankruptcy would be 9 months;

  • For a first time bankrupt with high income (with surplus) the length of bankruptcy would be 21 months;

  • For a second time bankrupt with low income (no surplus) the length of bankruptcy would be 24 months;

  • For a second time bankrupt with high income (with surplus) the length of bankruptcy would be 36 months.

Are all my debts eliminated when I file?

  • In most cases all unsecured debt will be eliminated, including Canada Revenue Agency debt. However, there are various debts that would not be eliminated and you would be responsible to maintain the payments. These debts would normally be any fine, penalty or restitution order made by the court, parking or speeding tickets, spousal or child support, any award for damages in respect of an assault, and student loans that are less than seven years old since your last study date.

What are my duties when filing a bankruptcy?

  • Attend two mandatory counselling sessions within the required time frame;

  • Provide monthly income and expense statements, this will allow the Licensed Insolvency Trustee to determine if you are required to pay any surplus income;

  • Provide income tax information for the year in which you filed the bankruptcy;

  • Keep your Licensed Insolvency Trustee informed of your current address and other contact information.

What will happen to my credit rating?

  • For a first time bankrupt, the bankruptcy will be on your credit report for seven years after your discharge. For a second time bankrupt, the bankruptcy will be on your credit report for fourteen years after your discharge. Even though it is on your credit report, our qualified counselors will discuss with you the necessary steps to take in order for you to rebuild your credit history.

  • The bankruptcy ends (you receive a discharge) once the time frame has lapsed and you have completed your required duties. Once discharged, you will be released from the legal obligation to repay the debts that were included in the bankruptcy.

How do I get started?

  • Book an initial meeting with a Licensed Insolvency Trustee to review your monthly income and expense, your debt load and your assets. We will explain all of your duties and responsibilities, and we’ll be at your service throughout the process. We take pride in our commitment in making sure that you get the personal bankruptcy help you need.

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