Bankruptcy Ontario: Find a Trustee
Declaring Bankruptcy In Ontario
Benefits of Bankruptcy / Consumer Proposal in Ontario
If you are either considering or facing bankruptcy, it may be time to take the next step. Have you found a Bankruptcy Trustee in Ontario yet? This is key in going through the process of exploring your options. Learn more about if you should file, how you should file and whether or not credit counselling or a consumer proposal would be a better route, and how to file for bankruptcy in Ontario.
With the help of a Licensed Insolvency Trustee, Ontario residents can confidently go through the process of debt resolution, knowing they’re on the path to rebuilding a sense of financial stability in their lives.
Here we present the benefits of declaring a bankruptcy in Ontario so you’re better informed for taking the right step towards resolving your debt issues. Let’s get started!
Why File for Bankruptcy?
Filing for bankruptcy may not be the best bet for all individuals going through a debt crisis. However, it has some advantages, listed below:
- No annoying phone calls from collectors
Bankruptcy is a legal procedure, which means that your unsecured creditors must accept it. An automatic ‘stay of proceedings’ prohibits them from harassing you for payments by way of calls or any other correspondence. They cannot enforce any court action, which means that any lawsuits initiated by them or any other action like freezing of your bank accounts will stop immediately after the automatic stay. In addition, bankruptcy also stops wage garnishments, foreclosures, and evictions.
- Does not affect your spouse
If your debts are yours alone, then filing for bankruptcy will not affect your spouse or their credit rating. However, it’s best to seek counsel from a Licensed Insolvency Trustee in case of any extraordinary circumstances.
- Comparatively low-cost option that allows you to keep your car (up to a certain value) and exempt property Bankruptcy exemptions allow you to keep all exempt property when you file for bankruptcy. In addition, bankruptcy is a comparatively low-cost option as its cost doesn’t depend on how much you owe your unsecured creditors, no matter how large the amount may be.
However, if you have non-exempt property, it will be sold by your insolvency trustee and the proceeds will be used to pay off your creditors. If you’re considering a consumer proposal vs. bankruptcy in Ontario, remember that the former allows you to keep more assets and impacts your credit score less severely. Ultimately though, it depends on your unique situation. Seek expert guidance from a Licensed Insolvency Trustee in Ontario.
How Bankruptcies Work In Ontario
In Ontario, as in the rest of Canada, bankruptcy is an insolvency solution meant to put the honest but unfortunate debtor back on a new, and hopefully better, financial footing. Bankruptcy eliminates most unsecured debts. Thus, it is a fresh start – as if you are just setting out, like you did when you entered your independent financial life as a young adult.
In a bankruptcy, a Licensed Insolvency Trustee helps you enumerate your income, your expenses, your assets and your debts, so that a plan for your bankruptcy can be made. Not all bankruptcies are the same. Some first-time bankruptcies last only nine months – others last 21 months. The difference lies in whether you make what is called surplus income.
At this link you can calculate whether you earn surplus income, which is simply income above a government-determined amount meant to represent the minimum income an average person needs. There is nothing wrong with earning surplus income, but if you earn it, a portion of it is assessed to be paid back into your bankruptcy. During your bankruptcy, you will report your income to your Trustee every month so that this determination may be made.
The bankruptcy process for all of Canada is legislated in Canada’s Bankruptcy and Insolvency Act. Most aspects of bankruptcy are the same throughout Canada, with a notable exception: how much and what types of property and assets are exempt from bankruptcy in your province or territory. Read on to learn more about exemptions in Ontario.
Ontario Bankruptcy Exemptions
One of the reasons it is important to consult a Licensed Insolvency Trustee about your bankruptcy in Ontario is that each Canadian province and territory legislates its own list of exemptions to bankruptcy. This is a list prescribing what value in assets or specific items you can keep when undergoing a bankruptcy.
Why are there exemptions?
Exemptions are in place because bankruptcy is not a punishment, but a way of starting over, financially. Thus, it would not be constructive to leave a person penniless and without shelter or the tools of their trade. You need the means to make a new start.
Bankruptcy exemptions (what you keep) in Ontario
Ontario’s Execution Act and its Regulations, which are updated every five years, define what you can keep when you file for bankruptcy in Ontario. Under legislation current in 2021, you may keep:
- clothing for yourself and your family (dependents)
- household furnishings up to a value of $14,180
- your tools and personal property used to earn your living, up to a value of $14,405 (or, if the principal occupation is farming, a total of $31,379 including livestock and tools)
- one motor vehicle up to a value of $7,117
- your home, if its equity does not exceed $10,783
- medical aids and devices for yourself or your family
As regulations may change, and some are subject to interpretation, it is important to consult with a Licensed Insolvency Trustee as you consider the impact of bankruptcy.
How To File Bankruptcy In Ontario
Your first step is to contact a Licensed Insolvency Trustee (LIT). Under Canadian Law, a LIT is the only professional who can file your bankruptcy documents. LITs are specifically trained to find insolvency solutions that are in the best interests of both the debtor and the creditors.
When you meet with a LIT, the information you gather will help you rest easier, as you see the road ahead. Depending on your situation, the LIT may describe other insolvency solutions as alternatives to bankruptcy. Your first meeting with a LIT is free, confidential and you are under no obligation.
Simply described, the process starts with your first meeting. If you decide to proceed with filing bankruptcy, you will provide your financial records (pay statements, credit bills, monthly expenses, etc.) to the LIT, who will prepare the paperwork.
The LIT will discuss with you your obligations in bankruptcy, which will include submitting a monthly statement of income and expenses and attending credit counselling sessions. You will learn how long your bankruptcy is likely to last, and which assets or property will be “seized” (which sounds violent, but is simply an old legal term). You will learn how the property or assets will be collected.
Once the paperwork is ready, you and the LIT will sign it, and the LIT will submit it to the Office of the Superintendent of Bankruptcy Canada, officially starting the process. At this point, your creditors will no longer be allowed to contact you directly.
When the term of your bankruptcy is up, if you have completed your obligations and other factors are met, you will receive an absolute discharge from your bankruptcy. When this document is issued, you are officially freed of the debts covered by your bankruptcy.
Licensed Insolvency Trustees in Ontario
Our Licensed Insolvency Trustees in Ontario are experts on debt settlement in Ontario. They are licensed by the federal government and specialize in both bankruptcy and alternatives to bankruptcy, such as Consumer Proposals.Fill out the form so one of our expert local insolvency trustees can reach out to you and answer for free any of your questions regarding bankruptcy in Ontario or Ontario bankruptcy law.
Follow these easy instructions to get help:
| 1. Look at the list below, or use the search box to find the city, or location, nearest you 2. Call the phone number to book a free, confidential, no-obligation consultation 3. You’ll be put in touch with a debt relief specialist who will explain all options to help you 4. Your meeting will initially take place on the phone or online |
Why You Should Work with an Ontario Bankruptcy Trustee
There are many reasons why you should consider working with a bankruptcy trustee. Ontario residents have found that the trust they are able to put into their Licensed Insolvency Trustee results in a much less stressful process, as they feel confident that someone is on their side every step of the way.
If you’re not sure about why contacting a Licensed Insolvency Trustee is a smart move, you may want to consider the following reasons:
- Consultations are free.The last thing you need is another expense. Trustees will review and explain your options for debt relief, in language you can understand. No fees, no pressure, no obligation – just information that will help you determine your next steps.
- Licensed Insolvency Trustees are educated and trained. Virtually all trustees have both a university degree and an accounting designation. They are required to take and pass an extensive law and bankruptcy course. They are also investigated by the RCMP before they receive their license.
- Trustees don’t work for creditors. There is a huge misconception that trustees work in favor of \creditors. When in fact, the truth is they actually make sure that both sides are represented and respected fairly.
- Trustees lead you through the process. Bankruptcy proceedings can be scary and time consuming. A Licensed Insolvency Trustee will be your guide, explaining everything to you along the way and answering any questions you may have. They will ensure you understand everything that’s happening and help to make sure you receive your discharge successfully and timely.
- Working with a trustee protects you. Licensed Insolvency Trustees are regulated by the Federal Government, and they offer you protection as they are legally required to work ethically on your behalf. From the moment you file, there is an immediate stay of proceedings that protects you from creditors.
- Trustees don’t only handle bankruptcies. One of of the best benefits of working with a trustee is that you don’t always have to actually claim bankruptcy just because you’re working with them. Their job is to advise you on the best path for you to take to come up with a debt resolution plan. This could mean bankruptcy, or it could be filing what’s known as a Consumer Proposal. It might also mean providing you with solutions and suggestions on how to best handle your debt on your own.
Navigating bankruptcy may feel overwhelming, but with the help of a Licensed Insolvency Trustee, you can trust you’re in good hands and that you have a partner who is willing and able to help you. Reach out today to find the help and guidance you need if you think you may be at the point of filing bankruptcy. Remember, there is no obligation or cost to you if you contact a bankruptcy trustee in Ontario today.
Related
LIT (Licensed Insolvency Trustee), New Designation
Find a Licensed Insolvency Trustee (If you’re in a different province)