Retirement and Bankruptcy – What are my options?

There are many possible options to deal with your debt. However a statutory remedy may be your best bet. Statutory remedies include either consumer proposals or filing bankruptcy. The first step is to create a detailed budget. This will allow you to determine whether or not you can manage the debt on your own or if you need outside help. If after this analysis you find that you are unable to make ends meet you may wish to, with the help of a bankruptcy trustee, explore the option of filing a Consumer Proposal. A consumer proposal is essentially a new contract that you enter into with your creditors as a whole. If the majority of the dollar value of the claims agree to the proposal it is binding on all of your unsecured creditors. The proposal will be tailored to your ability to make the required payments.

If you are unable to craft a viable proposal with the help of your trustee, you may wish to simply file an assignment in bankruptcy. This action does not require the consent of your creditors. A bankruptcy generally lasts either 9 or 21 months, assuming that you have not previously filed a bankruptcy. You would be required to keep track of your income and expenses during that time and make payments based on your ability to pay. In addition you will be required to attend two mandatory counselling sessions over the course of the bankruptcy. Other details of the bankruptcy procedure as it relates to your specific situation will be explained by your local trustee.