Question Asked...
can you explain how bankruptcy protection works??
I have no cash to pay off debt – but lots of equity – once assets are liquidated – debts will be taken care of – will bankruptcy protection buy us time in this case??
thanks
Bankruptcy protection is referring to the Stay of Proceedings that is put in place when you file a consumer proposal, bankruptcy, or under Orderly Payment of Debts.
Essentially this is a court order that eliminates your unsecured creditors from making any sort of collection attempt, whether that be phone calls, garnishment of wages or accounts, or seizure of assets.
While I don’t’ think a bankruptcy will be in your best interests you may want to consider contacting a licensed trustee and exploring the possibility of filing a consumer proposal. Consumer Proposals are often used as a mechanism to create a little bit of temporary space between you and your creditors to allow for things like the sale of property to take place.