Quick Guide to Bankruptcy in Brantford

by Howard Hayes on February 27, 2014

Howard HayesHere is a quick guide to Bankruptcy in Brantford

Purpose of Bankruptcy– The main principle aim of bankruptcy legislation is to give an honest and unfortunate person chance of relief from overwhelming debts and a fresh start.

How it works – The concept of bankruptcy is that you’re assigning control of your assets and financial affairs to a trustee in exchange for elimination of debt.  Once you file, you’re legally protected from your creditors, so they cannot call you, write to you or garnishee wages.

What does it Cost? – The cost of a bankruptcy is primarily based on two things:

  1.  Your household income and family size
  2.  The value of certain assets you own

Before you file, Howard will explain in more detail whether you’ll be required to make Surplus Income payments and how a bankruptcy will impact the assets you own.

Duties – Every bankrupt is responsible for the following:

  • To be honest
  • To make the required payments
  • To report household income & expenses each month to the trustee
  • To attend two credit counselling sessions
  • To provide the trustee with the necessary information to complete required tax returns
  • To keep the trustee informed of changes to your contact information
  • Co-operate with the trustee on matters regarding the estate administration if required

Although very rare, some bankrupts may also be required to attend a meeting of creditors and/or attend an examination if the creditors require more details about your financial affairs.

How long does it last? – The minimum time for a first time bankruptcy in Canada is 9 months, however there’s four reasons why a bankruptcy could last longer than 9 months:

  • If you have been bankrupt before, the minimum time of the bankruptcy is 24 months.
  • If you’re required to make payments under the Surplus Income rules, the bankruptcy is automatically extended a further 12 months.
  • If you don’t perform your duties.
  • If a creditor or other interested party opposes your discharge.

Does it clear all my debt? – Most debts are discharged in a bankruptcy; however some examples of debts that will not be affected include:

  • Child/Spousal Support
  • Fines, Penalties, Restitution
  • Debts resulting from fraud/misrepresentation
  • Student loans if you’ve been out of school less than 7 years
  • A co-signor will still remain responsible for a debt they signed for.
  • The rights of secured creditors are not affected (unless you give back the asset prior to filing).

Need More Information? – Don’t hesitate to call or email me if you have questions.

If you’d like to meet with me, email or call (519) 770 4440 and set up a date and time to come in to our Brantford office.  I’ll be happy to see you and answer any questions you have.

About

Howard has worked in our Brantford office for many years helping Brantford residents find solutions for debt problems. As a licensed trustee in bankruptcy Howard is able to explain all your options and find a solution that works for you.

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