What is bankruptcy in Toronto?
Personal bankruptcy is a legal process established by the federal government to help honest, unfortunate individuals with their debt problems. Once you have declared bankruptcy, you are released from your debts, but your non-exempt assets are taken by a trustee and sold in order to pay back your creditors. If you have never filed bankruptcy before, and if you have moderate income, a bankruptcy in Toronto usually takes nine months to complete and has a series of duties for you to complete.
What are these duties?
All of your duties as the bankrupt are explained to you when you meet with your trustee. As your trustee we are there to help you understand and complete each step necessary when filing for bankruptcy. Some of the duties that you will have to complete include:
- Submitting a monthly report or budget listing all of the money that came into your household and how it was spent. This is so you can be more aware of how money is spent and to prevent financial trouble from happening again.
- You must provide your trustee with all information required to file all outstanding personal tax returns up to the date of bankruptcy.
- You will have two mandatory money management classes, where you will work with a counsellor who will give you some tools to help you get a fresh start once the bankruptcy is over.
- Finally, you will have to make a payment to your trustee every month that will be distributed to your creditors. This payment is calculated based on your income, and the size of your family.
Once your bankruptcy is finished we will provide you with your discharge papers and you will be officially released from your debts incurred before your bankruptcy.
Is bankruptcy right for my situation?
Whether or not bankruptcy is right for you depends on your situation – each person is different and each financial situation is different. Even if you are just considering bankruptcy you should talk to a bankruptcy trustee to discuss all of your options and decide what is best for you.
Contact Us For A Free Consultation
Call us for a free consultation to discuss your options at 310-PLAN for more information and to set up a free consultation. You can also contact us by email to get all of your Toronto bankruptcy questions answered. Let’s get started.