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 Bankruptcy is a legal process administered by a licensed Trustee
and governed by a federal statute called the Bankruptcy and Insolvency
Act (BIA), it provides immediate relief to an overburdened debtor
by halting all legal actions available to your creditors.
When filing for bankruptcy all of your non exempt assets vest
in your trustee, who will then liquidate your property into cash
to satisfy the debts with your unsecured creditors.
Filing for bankruptcy is a difficult decision. It will include
all debts of $25 or more, however certain debts will survive bankruptcy
pursuant to Sec 178 of BIA. Bankruptcy will also hinder your ability
to obtain credit in the future. For a first time bankrupt the
credit bureau will have a record of your bankruptcy for 7 years,
and will list you as an R9.
When filing for bankruptcy all of your non exempt assets vest
in your trustee, who will then liquidate your property into cash
to satisfy your debts with your unsecured creditors.
The cost of filing for bankruptcy will depend on your Net monthly
family income, the size of your family, and your assets. A consultation
with a F.J. Zielski & Associates Inc. advisor will determine
the precise cost, and will help you understand each of the fees.
To qualify for bankruptcy, you must:
• owe at least $1,000
• be unable to make payments as they come due
• owe more than the fair market value of all your assets
(i.e. your home, car, etc.)
To start the process, you should meet with a F.J.
Zielski & Associates Inc. advisor for an assessment of
your financial situation, a discussion of your concerns with the
possible options and a review of your rights and responsibilities.
If you decide to proceed with bankruptcy, the Trustee will prepare
all the legal documents for your signature and file them with
the Official Receiver of the office of the Superintendent of Bankruptcy.
Personal bankruptcy can seem like an overwhelming process. However,
if bankruptcy is the right solution for you, your trustee will
be with you through each step of the way:
- Step 1:
Contact a Trustee such as F.J. Zielski
& Associates Inc.
- Step 2:
Meet with a F.J. Zielski & Associates Inc. representative
for a free and private meeting to talk about your personal situation
and your options.
- Step 3:
Your F.J. Zielski & Associates Inc. representative will
prepare all the legal documents for your signature.
- Step 4:
F.J. Zielski & Associates Inc. will file the documents
with the Official Receiver, and you will formally be declared
bankrupt. From this point on, a stay of proceeding will be in
place and the F.J. Zielski & Associates Inc. representative
will deal directly with your creditors.
- Step 5:
If necessary, you and your F.J. Zielski & Associates Inc. representative will attend a meeting with your creditors to
talk about the terms of your bankruptcy.
- Step 6:
In some cases, the Official Receiver may examine you under oath
to discuss the causes and terms of your bankruptcy.
- Step 7:
Within 10 and 60 days after you file for bankruptcy, you will
attend your first counselling session to learn about subjects
such as money management, shopping habits, and early warning
signs.
- Step 8:
After the first session has been completed and al least 30 days
have elapsed and within 210 days of your date of bankruptcy,
you will attend your second counselling session to learn about
the reasons for your bankruptcy and talk about how to regain
control over your finances.
- Step 9:
Nine months after you file for bankruptcy, you are eligible
for an automatic discharge. Once you are discharged, you will
no longer be legally responsible for most of your debts.
These downloaded forms will give your F.J Zielski & Associate
advisor the information they need to assess your situation so
you can make the right decision. Please complete the form as best
you can and bring it to your free consultation.
Restructuring Worksheet
Statement of Income and Expenses
Income Tax Information
Are you a high income earner (MORE INFORMATION HERE) or do you not reside in Canada (MORE INFORMATION HERE)?
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