Are you considering bankruptcy in Canada? Your trustee can help.

Are you having trouble paying off debt?  Are you being hounded by creditors and having trouble seeing a way out? Left unchecked, debt can continue to grow until you feel like you will be crushed under its weight. The good news is that there is a solution and a trustee in bankruptcy can help you find it.  

Franklin D. Roosevelt, a licensed trustee in bankruptcy servicing the Kamloops area, understands that most people and businesses suffering from financial difficulties want to pay their bills.  They have been placed in a difficult situation through some unforeseen circumstances, circumstances that are often beyond their control.

There are options for people like you who want a chance to start over. Franklin D. Roosevelt will help you to understand your options and proceed with the one that creates the best opportunities for you in the future.  

The sooner you call, the sooner the calls from your creditors will stop. There is no charge for your initial consultation.  You have nothing to lose! Call (604) 230-4669 today to start regaining control of your finances.

Is bankruptcy the only option?

Bankruptcy is not the only option for those having trouble meeting their financial obligations.  It may, or may not, be your best option.  It will depend on your particular circumstances, needs and goals.  Franklin D. Roosevelt will explain all of your options and help you to decide which one will get you back on sound financial footing as quickly as possible and with  minimal disruption to your life.  

Filing for bankruptcy is a process governed by federal law (the Bankruptcy and Insolvency Act), which gives individuals or businesses in financial difficulty the opportunity to start over with no debt.  Declaring bankruptcy does have its downsides.  For example, some or all of your assets may be sold to pay your creditors.  Declaring bankruptcy will also affect your credit rating for several years.  

In addition to explaining the pros and cons of bankruptcy proceedings, Franklin D. Roosevelt can help you to explore other options that may be more appropriate in your particular circumstances, including:

• Consumer or commercial credit proposals.
• Debt consolidation.
• Debt management plans.
• Debt settlement.

No matter how hopeless your financial situation appears, there is a way out and Franklin D. Roosevelt will help you to find it.  The sooner you call, the more options may be available to you.  Pick up the phone today.  

What is a trustee in bankruptcy?

A trustee in bankruptcy is licensed by the federal government (through the Office of the Superintendent of Bankruptcy) to administer insolvency proceedings that are governed by the Bankruptcy and Insolvency Act, which proceedings include:

• Personal bankruptcy.
• Commercial or corporate bankruptcy.
• Consumer credit proposals.
• Commercial credit proposals.

In order to file for bankruptcy or submit a credit proposal, you must work with a trustee in bankruptcy.  

The trustee’s job includes:

• Ensuring that you understand all of your options (including those over which the trustee has no authority and which will not result in the trustee getting paid).
• Answering your procedural questions and ensuring that you fill out all forms properly.
• Providing counselling services on credit and finances to help you avoid financial pitfalls in the future.
• Mediating a solution that is fair to both you and your creditors.
• Filing a tax return for you on the day you file for bankruptcy so that any money you owe to CRA is included in your total debts.

What are the benefits of filing for bankruptcy?

One benefit of filing for bankruptcy is that all of your creditors are required to stop enforcement proceedings against you immediately.  This means that creditors can’t proceed with lawsuits or proceedings to garnishee your wages.  It also means that they can no longer call and ask you for money. The phone calls will stop right away.  

Once you are discharged from bankruptcy, your debts are cancelled.  There are no continued payments or obligations.  You get to start fresh with absolutely no debts.  

There are a few exceptions to the cancellation of debts, the most common of which include:

• Spousal support.
• Child support.
• Student loans.
• Court fines.

Franklin D. Roosevelt will help you to analyze your financial situation and determine if bankruptcy is the best option for you.

How do I file for bankruptcy?

If you decide that filing for bankruptcy is the best way forward, the process is simple. You provide Franklin D. Roosevelt with information relating to your debts and assets.  Your trustee will help you to fill out the required paperwork and file it for you.  You then turn over any assets that you own (with some exceptions) to Franklin D. Roosevelt, who will distribute them to your creditors.   

Obligations during bankruptcy.

In order to be successfully discharged from bankruptcy and have your debts cancelled, you must meet certain obligations, including:

• Paying the prescribed fees.
• Surrendering your credit cards to your trustee.
• Turning over assets to your trustee (some assets are exempt).
• Filing monthly income statements and turning over any “surplus income” (any income over a certain amount, depending on your needs and the size of your family) to your trustee.
• Attending 2 educational credit counselling sessions with your trustee.
• Informing any lender of your bankrupt status if you borrow more than $500.

Before you file for bankruptcy, Franklin D. Roosevelt will ensure that you understand and are able to meet the obligations that apply to your situation.

What will happen to my property?

Once you file for bankruptcy, you must turn over any property that you own to your trustee, who will use that property to pay off as much of your debt as possible.  In the case of a personal bankruptcy, some property is exempt from forfeiture.  Exempt property varies from province to province, but often includes:

• Food.
• Heating fuel.
• Clothes.
• Furniture.
• Health aids.
• Vehicle.
• House.
• Tools of the trade.
• Farm equipment and tools.
• Pensions.
• Retirement savings (RRSPs).

There are limits to the value of the exempt property that you can retain.  These limits also vary between provinces.  Franklin D. Roosevelt can help you to determine precisely which assets you will be able to retain if you file for bankruptcy.

How will my bankruptcy affect my spouse?

Your bankruptcy will only affect your debts and your assets, but this can affect your spouse if you own property jointly.  Jointly held property may need to be sold, even though you will only be required to surrender your half of the value to your trustee.  

In addition, if your spouse has co-signed any loans or guaranteed any of your debts, he or she will still be responsible for those debts, even after your debts are cancelled through the bankruptcy proceedings.  

How long does the bankruptcy process take?

If this is your first bankruptcy, and you have no surplus income, then you qualify for an automatic discharge after 9 months.  Most individuals who file for bankruptcy fit into this category.  

If you earn surplus income, then you qualify for discharge after 21 months.  The increased period of time is intended to give your creditors time to recover more of their losses through your monthly surplus income payments.  

After 21 months, Franklin D. Roosevelt will file a report and apply to the court for a discharge order.  The court will base its decision to discharge you on your conduct, your reasons for declaring bankruptcy and your level of cooperation throughout the bankruptcy process.  

The sooner you get started, the sooner you will be discharged and your debts will be a thing of the past.  Your initial consultation is free so contact Franklin D. Roosevelt today to get started.