Bankruptcy Canada: Is bankruptcy the only option?

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Canada Bankruptcy: In Tough Economic Conditions, Canadians file for bankruptcy at an alarming rate!

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Bankruptcy is an option available when you are not in a position to repay a reasonable portion of your debt. The process relieves you of most debts, and legal proceedings by creditors generally stop.

A first bankruptcy can be completed in 9 months. Payments to the Trustee / CIRP are based upon your family income and the process and procedures would be explained to you during your free initial consultation with the Trustee / CIRP.

Most of your personal assets are exempt from seizure in bankruptcy, up to a maximum value amount for each type of assets.

Under the bankruptcy option the amount you pay is governed by the Bankruptcy Insolvency Act (BIA), based upon your unique situation.

Debit is too high and you need advice on bankruptcy?

If your financial problems are at the point where you would like some advice on bankruptcy, then please feel free to contact us. Our trustees will work with you to help make this difficult financial time as easy on you and your family as possible. Stop feeling overwhelmed by your debt and start on your path to financial freedom without claiming bankruptcy!

The procedures and legal consequences of consumer bankruptcy in Canada are governed by Canadian federal legislation.

Consumer bankruptcy is a legislative procedure under Bankruptcy and Insolvency Act ("the BIA")

1. Complemented by provisions of federal and provincial legislation
2. That allows an insolvent person, who cannot pay his debts and liabilities, and who assigns himself or petitioned by the creditors into bankruptcy, to surrender his property to a trustee in bankruptcy for the purpose of distribution among creditors in accordance with legislative priority of distribution scheme; and upon bankrupt’s compliance with bankruptcy procedures
3. allows a bankrupt to be discharged (excused) from paying all or part of his debts and liabilities. The legislation may be complemented by regulations and Office of the Superintendent of Bankruptcy directives (OSB Directive(s)) (the latter provide guidelines to the trustees in bankruptcy on various aspects of the BIA).

The bankruptcy procedure is under reform. Bill C-12 is a comprehensive insolvency reform package by Parliament to modernize the BIA and related acts. As of April 2008 the bill has received Royal assent but its legislative and regulatory amendments have not yet been proclaimed in force. The current status of Bill C-12 can be found at the Office of the Superintendent of Bankruptcy website and Parliament's website.