You can learn about your financial options by giving us a call and speaking to a Licensed Insolvency Trustee today. Our Licensed Insolvency Trustees will discuss what you owe and give you expert advice on the best way to properly deal with your debts.
Should You Consider Filing for Bankruptcy
When you’re considering filing for bankruptcy the first step is get information, learn the facts and find out what’s involved.
Consumer Proposals vs Filing for Bankruptcy
People may choose a consumer proposal to avoid going bankrupt. In a bankruptcy, you’re unable to pay your debt and don’t usually have much left over after paying your basic necessities.
In a consumer proposal, on the other hand, you have the ability to pay at least a portion of your debt but need interest to stop and more time to pay. Read more about consumer proposals versus filing for bankruptcy >
Property Ownership in a Bankruptcy
In terms of property ownership, in a bankruptcy, you assign your assets to the trustee. There are however, many assets that you can keep because they are exempt from seizure.
Even if an asset isn’t exempt, you may get to keep it by paying its value into your bankruptcy. For assets like a house or a car, if there is no equity, you can just continue to pay the bank loan or car loan in a consumer proposal, you usually don’t lose your assets.
Filing for Bankruptcy and Your Income
In a bankruptcy, your income can impact the length of the process. Each month during the bankruptcy you are required to report your income to your trustee.
If your income changes, the amount you are obliged to pay will also change. In a consumer proposal, the trustee will look at your income and help you come up with a monthly payment to offer to your creditors. In a consumer proposal if your income goes up or down, you payment stays the same.
Credit Ratings and Filing for Bankruptcies
A bankruptcy stays on your record at the credit bureau for seven years and consumer proposals stay on your record for three years after the completion of the proposal up to a maximum of seven years.
The information provided within this website about bankruptcy and your credit after a bankruptcy discharge is protected by copyright law. Any distribution or reproduction in any way, shape, means or manner is expressly prohibited by law without the the prior written consent of the owner(s) of the copyright.
This site is for information only and is not meant to replace qualified legal advice by a Licensed Insolvency Trustee the writers shall not be held responsible for any information that may be incorrect or out of date in regards to consumer proposals and getting out of debt. The owners of this website recommend that anyone wishing to learn about how a trustee can deal with your financial issues should contact our office.