What is bankruptcy?
Bankruptcy is a legal process administered by a Licensed Insolvency 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.
The cost of filing for bankruptcy will depend on your net monthly family income, the size of your family, and your assets. A free consultation with a F. J. Zielski & Associates Inc. advisor will determine the precise cost and will help you understand each of the fees.
Do I qualify for bankruptcy?
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.)
How do I start the process?
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.
What to Expect
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:
Contact a trustee such as F. J. Zielski & Associates Inc.
Meet with a F. J. Zielski & Associates Inc. representative for a free and private meeting to talk about your personal situation and your options.
Your F. J. Zielski & Associates Inc. representative will prepare all the legal documents for your signature.
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.
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.
In some cases, the Official Receiver may examine you under oath to discuss the causes and terms of your bankruptcy.
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.
After the first session has been completed and at 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.
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.
Downloadable forms are available from F. J. Zielski & Associates Inc. to present to your advisor. The forms will provide the information needed to assess your situation so a decision can be made. Schedule a free consultation at one of our offices in Belleville, Kingston, or Trenton. You can also call our direct line Cobourg for advice.