Bankruptcy should be regarded as a last resort to eliminate debt. But for many it may be the solution to their financial crisis.
In fact, it may be the fastest route to re-establishing credit and returning to a stress-free lifestyle.
(Bankruptcy is reported on the credit bureaus for 6-7 years whereas in a consumer proposal, it is typically reported for 8 years).
For some, the cost to file a bankruptcy may be zero, although this is rare. But for those with simple situations, it may be possible to pay less than $75 a month to eliminate debt.
If income is low, employment is uncertain, or self-employed revenues are inconsistent, then bankruptcy may be the optimal solution.
Bankruptcy brings a complete halt to creditor collections and legal action to recover most debt (claims for spousal or child support are not halted). The Canada Revenue Agency is also stopped in their tracks; they cannot take action to place a lien on real property or seize income. In fact, in a bankruptcy, tax debt is treated like all other unsecured debt.
Most bankruptcy filings proceed by way of ‘summary administration’ which means that the process is less formal and more streamlined without the need to involve the court. The majority of bankruptcy files that we administer are summary administration files that begin and end in our office without any requirement to attend court or meet anyone else for that matter. The process in Canada is much different to that in the USA where bankruptcies start by an application to the court.
Most people who file bankruptcy with our firm complete their bankruptcy in 9 months and never have to go to court or meet with anyone other than our staff.
If income is low, employment is uncertain, or self-employed revenues are inconsistent, then bankruptcy may be the optimal solution.
Ask us how it may be possible to qualify for a low cost bankruptcy.
Visit our blog to learn more about How to File for Bankruptcy in Toronto for more information.
Also see our comprehensive Toronto Bankruptcy FAQs Section for answers to your questions about bankruptcy.