Bankruptcy

What is Bankruptcy in Ontario?

Bankruptcy is a legal proceeding that is available to a person to cope with a financial crisis. One of the main purposes of bankruptcy is to afford the opportunity to a person, who is hopelessly burdened with debt, to free themselves from debt . Contact us and get a " Fresh Start ".

Who Is Eligible to File Bankruptcy?

You must owe at least $1,000.00, be 18 years of age and be unable to meet regular payments to creditors as they become due.

Frequently Asked Questions

Can I Choose Which Debts Are Included?

No. All debts must be included in the bankruptcy. However, some debts will survive the bankruptcy and they will still have to be paid. Such as:

court fines
things obtained by misrepresentation or fraud
alimony or maintenance payments
award of damages by a court for intentionally inflicting bodily harm or
sexual assault
student loans if bankruptcy is filed prior to or within 10 years after
the termination of studies

Will My Creditors Stop harassing Me?

Yes, they will! By law, all actions against a person must cease once the bankruptcy documents are filed. This does not apply to secured creditors such as banks holding, for example, a lien on a car, on a mortgage or on a real property.

What Happens to My Assets?

In Ontario, what you are entitled to keep is determined by the Execution Act. In summary, you are generally able to keep the following property:

Necessary clothing and personal effects up to a value of $5,650.00.
Household furnishings and appliances to a value of $11,300.00.
Tools of the trade that helps you earn income up to a value of $11,300.00
Others: Automobiles up to a value of $5,650.00

Legislation also allows you to keep:

In certain cases, the cash surrender value of life insurance policies (including some R.R.S.P.'s)

In general, pension plans are not seizable and will be retained by you.

What About real Estate Assets?

The Trustee will examine the title documents to your home or any other real estate assets and determine if there is any equity belonging to you. This equity is an asset of your estate. If there is no equity in the property, the Trustee will release its interest in the property to the mortgage holders.

If you wish to stay in possession of the property, you must continue to pay your mortgage.

When is My Bankruptcy Over?

For those people who have not been bankrupt before, an automatic discharge will take place after nine (9) months, if the creditors, Superintendent of Bankruptcy or Trustee have not opposed your discharge and you have received mandatory counseling.

What Are My Duties Whilst in Bankruptcy Toronto?

You have a number of duties prescribed by law while you are undischarged. Some of these are:

To disclose to the Trustee all of your assets and liabilities.
To attend financial counseling sessions.
To assist the Trustee in dealing with your property.
To attend a meeting of your creditors.
To attend an examination by the Official Receiver, if required.
To keep the Trustee informed of your address during the bankruptcy
process.
To keep the Trustee informed of changes in your financial circumstances.
Fulfill your obligations regarding financial contribution to your estate.

Failure to comply with your duties may interfere with your discharge from bankruptcy in Ontario.

Note: The duties of a bankrupt person will be explained fully to you by our experts before you make any decision on how to best handle your financial problems.