INDIVIDUAL OPTIONS

PERSONAL BANKRUPTCY

Personal Bankruptcy Options in Vancouver, BC

Looking for a personal bankruptcy consultant in Vancouver? Most people at some point in their life will experience financial problems. If you’ve been saddled with an insurmountable amount of debt and have creditors harassing you for payment, there is no need to feel embarrassed or ashamed. Our bankruptcy trustee at Crowe MacKay & Company can suggest strategic options to deal with your creditors. We can help you understand the complete bankruptcy filing process and handle paperwork on your behalf. 

Bankruptcy is a legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts.

Benefits of Filing Personal Bankruptcy

The advantages of filing personal bankruptcy are as follows:

• Your Licensed Insolvency Trustee (LIT) will deal with your creditors on your behalf. A stay of proceedings will be in place which prevents creditors from continuing or commencing any action against you. This will prevent the creditors from making harassing calls, suing, or sending threatening letters to you.
• This will also stop wage garnishments and legal proceedings.
• When you make an assignment in bankruptcy, you will be able to keep certain assets. Each province has its own exemptions. You should discuss them with a Licensed Insolvency Trustee (“LIT”).

Eligibility for Personal Bankruptcy

In order to be eligible for bankruptcy, an individual must be insolvent. There are a number of factors to consider when determining whether an individual is insolvent which include, but are not limited to, the following:

• Liabilities greater than $1,000
• Inability to satisfy obligations as they generally become due
• Amount of debt exceeds value of assets

Although some individuals may consider themselves as insolvent, there may be other options available to you besides bankruptcy. Your first step should be to meet with a Licensed Insolvency Trustee (“LIT”) in Vancouver. The professionals at Crowe MacKay & Company will evaluate your financial situation and discuss the various alternatives that could help you solve your financial problems.

How Personal Bankruptcy Works

Below is how the filing of a personal bankruptcy works:

• Firstly you will work with an LIT, who will file the forms (submitted by you) with the Office of the Superintendent of Bankruptcy (OSB). Once the forms have been accepted by the OSB, you will be in bankruptcy.
• With respect to your assets, your non-exempt assets will be assigned to the Trustee for realization for the benefit of your creditors. This may include property acquired during your bankruptcy. Certain assets may be exempt from seizure such as: clothing, tools of the trade, cars, RRSPs, and your principal residence.
• Depending on your income level, you may be required to make payments to the LIT for distribution to your creditors during the term of your bankruptcy. These are called surplus income payments.
• Surplus income may arise if your household income exceeds the prescribed standard set by the Office of the Superintendent of Bankruptcy (OSB). This calculation varies depending on your family size and income.
• Bankruptcy terms vary from individual to individual but typically range between 9 and 21 months for first-time bankrupts depending on whether or not they have surplus income.
  
  

Duties to Perform During Bankruptcy

If you have declared bankruptcy, you must fulfill certain duties to get discharged. Some of the essential duties are:

• Make the payment
• Attend two counselling sessions
• Report your monthly income and expenses
• Disclose all your property and provide documents requested by the trustee
• Surrender all non-exempt assets along with your credit cards to the trustee

Upon completing all these duties, you will be eligible for automatic discharge, whereas non-compliance to these activities or providing false information will have consequences.

What Happens to Income, Assets and Debts After Declaring Bankruptcy in Vancouver?

Your income is unaffected by bankruptcy, but you must report your monthly income and spending to your trustee when you file for bankruptcy. You also have to keep the LIT notified of any changes in your income during the procedure.

Regarding the assets, when you declare bankruptcy, you agree to hand over many, if not all of your personal assets. But certain things are exempted from seizure, which may include sentimental objects, clothing, retirement plans, and more.

In addition, declaring bankruptcy will not always clear all your debts. Note that some debts such as child support payments, criminal fines, and more are not included in the bankruptcy.

Why Hire A Licensed Insolvency Trustee?

LIT's are federally regulated professionals who deal directly with the creditor on your behalf. The trustee will analyze your financial situation and advise the best insolvency plan. Irrespective of the solution your choose, be it declaring bankruptcy or opting for a consumer proposal, the trustee will be your representative. Your trustee would help you complete the paperwork and manage the disbursement of your assets to the creditors. The professional at Crowe MacKay & Company have over 50 years of experience serving the Greater Vancouver area with personal bankruptcy and debt relief solutions.

Schedule a Consultation for Personal Bankruptcy in Vancouver

As your trusted insolvency trustee, we provide you with a variety of debt solutions and evaluations. If you are looking for personal bankruptcy consultants in Vancouver, contact the professionals at Crowe MacKay & Company. We can help you regain control of your finances and give you the tools to rebuild a better, more financially-secure future.