Bankruptcy is a legal process that leads to the release of your debts. The legal terms used are an assignment in the case of a voluntary bankruptcy, and a receivership resulting from a request from your creditors.
DOES BANKRUPTCY RELEASE ALL DEBTS?
This procedure relieves a debtor of unsecured debts, with the exception of non-dischargeable debts under section 178 of the BIA, including:
► Arrears for alimony
► The fines
► Debts resulting from fraud (whether intentional or not on your part)
► Overpayments of social assistance and employment insurance (in most cases)
► Some student loans
Consult us to check if there are any exceptions among your debts. It is important to note that although the above exceptions are usually non-dischargeable, these debts must be reported to the insolvent trustee.
WHAT WILL ARRIVE AT MY HOUSE, MY CAR AND MY OTHER GOODS?
We will explain to you during a first meeting if your goods are exempt from seizure, such as:
► Movable property, up to a maximum of $ 7,000 in market value
► The clothes
► Work tools
► In some cases, it is possible to keep your car and your house, subject to the rights of secured creditors
► The majority of life insurance policies
► RRSPs subject to certain conditions
BENEFITS OF PERSONAL BANKRUPTCY
► Allows you to clear all your debts and have a new financial start
► Protects you from any procedure including payroll seizure
► You get budget support consultations from the trustee or a qualified advisor
► Certain pre-bankruptcy tax returns are prepared by the insolvency trustee
► Some goods are unseizable
► Keeps you safe from legal proceedings
► In some cases, you can keep your car, your house and your RRSP
Consultation with an Insolvency Trustee
We understand that each situation is unique, hence the importance of consulting an authorized insolvency trustee to fully understand the implications of making an assignment. Our consultations are free. Contact us!