If you are reading this page, chances are you’ve been struggling with your finances for some time. So, you may be surprised when you read this: Good News!
Gathering accurate bankruptcy information is the best thing you can do right now. The future may not be as bleak as you may have imagined. Yes, you need to find a solution. No, it’s not the end of the world.
First things first: what does it mean, in simple terms, to declare bankruptcy? Is it something you do yourself? Does a person need to research how to declare bankruptcy?
More welcome news: if you are considering declaring bankruptcy, you’ll have help – you won’t need to know how to fill out all the paperwork yourself. And, in a personal bankruptcy, nothing resembling “declaring” is actually needed. In most cases, only a few people need to know about your financial issues.
What Do I Need To Do To Declare Bankruptcy?
You have probably already completed the first steps – realizing you have a financial problem that needs a solution, and seeking basic information about bankruptcy.
Next, it’s time to reach out to a Licensed Insolvency Trustee (LIT). Only a Trustee is qualified to file and administer a bankruptcy, if a bankruptcy is required. Keep in mind that you don’t need to be certain of how serious your financial situation is, before you consult a Trustee. At your free first appointment, he or she will review your basic financial information with you, and will describe solutions that may or may not include bankruptcy. If bankruptcy is one of the potential solutions, the Trustee will give you more information on filing bankruptcy.
There is no risk in confiding in a Trustee. He or she cannot force you into bankruptcy. Your first appointment will be spent simply gathering the facts, and getting to know each other.
What Happens When You Declare Personal Bankruptcy?
If the Trustee recommends bankruptcy as your best insolvency solution, and you instruct the Trustee to file the bankruptcy on your behalf (again, only a Licenced Insolvency Trustee can do this), here is a very basic description of what will happen.
1. The Trustee will draw up papers for you to sign.
2. Once the papers are signed, the Trustee will immediately file the bankruptcy with the Office of the Superintendent of Bankruptcy Canada, and your creditors will be informed.
3. You will stop making payments to your creditors.
4. Calls and communications to you from your creditors will cease.
5. You will attend two financial counselling sessions with your Trustee.
6. You may make surplus income payments, depending on your income during bankruptcy.
7. If you have met your obligations during the bankruptcy, you will be discharged.
Once you are discharged, your obligations to creditors included in the bankruptcy are complete – they may not legally approach you for any further payment. At that point, you have a fresh financial start, and can begin rebuilding your credit rating.
This is obviously a very basic description of how to declare bankruptcy, and probably raises many additional questions for you. For answers on how this bankruptcy information applies to your specific situation, book a free first appointment with me today. Accurate facts, and the help of a Licensed Insolvency Trustee, are your best allies.