Canada Bankruptcy

Personal Bankruptcy in Canada

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its Creditors.  If you are unable to pay your bills as they come due and debt negotiation and settlement an option, you might find yourself in a situation where filing bankruptcy is your only alternative.

Do I really lose everything?

Technically, everything that you own, except items listed as exemptions seized by the trustee and sold to repay your creditors. The laws surrounding personal bankruptcy and bankruptcy exemptions vary by province.

What about my house?

Like Consumer Proposal personal bankruptcy in Canada only deals with unsecured creditors. Unless you have accumulated significant equity in your home, it will probably be unaffected by your bankruptcy. If you own a home, make certain to discuss the disposition of your home in detail before filing for bankruptcy in Canada.

What about my car?

If you have clear title to your car (e.g. you haven't pledged it as security for a loan) in the moment of filing for bankruptcy, and the car is worth more than $5,650, then you will be required to either pay the trustee the value of the car from your post-bankruptcy earnings or the trustee will be forced to seize and sell your car. If you have a car, or any other type of vehicle, make certain to discuss the disposition of your car with your trustee before you file bankruptcy.

Find out what your options are, talk to us today!!!

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