Bankruptcy is something most people don’t really understand.
When used correctly, bankruptcy can give a person who is hopelessly overburdened with debt a chance for a fresh start and a clean slate.
What Is Bankruptcy?
To put it simply, personal bankruptcy is when you surrender everything you own to a Licensed Insolvency Trustee in exchange for the elimination of your debts. Some exceptions allow you to keep some minimal necessities.
Surrendering so many of your assets might sound harsh, but bankruptcy can be a great help if your debts have spiraled out of control.
Personal bankruptcy is a legal process governed by federal law. The law is designed to allow an honest but unlucky debtor to get some relief from their debts, which also treating their creditors fairly.
Bankruptcy is a legal process and includes a ‘stay of proceedings’ that stops any legal action from happening and prevents your creditors from contacting you anymore.
Who Can File For Bankruptcy?
Filing bankruptcy in Canada isn’t complicated. To go into personal bankruptcy in Canda, a person must have lived or worked in Canda within the last year and must be insolvent. Being insolvent means:
You owe at least $1000
You aren’t able to meet your debts as they are due to be paid.
