{"id":8904,"date":"2020-02-05T21:00:28","date_gmt":"2020-02-06T02:00:28","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=8904"},"modified":"2021-02-01T12:39:13","modified_gmt":"2021-02-01T17:39:13","slug":"bankruptcy-in-canada-personal-bankruptcy","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/bankruptcy-in-canada-personal-bankruptcy\/","title":{"rendered":"BANKRUPTCY IN CANADA:  THE STEP-BY-STEP CANADIAN PERSONAL BANKRUPTCY PROCESS"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/IPOZWfEt-_c\" width=\"962\" height=\"541\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2 id='introduction'  id=\"boomdevs_1\"><span style=\"color: #00ccff;\"><b>Introduction<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The purpose of this Brandon&#8217;s Blog is to explain to you the <strong><em>personal <\/em><\/strong><\/span><strong><em>bankruptcy in Canada<\/em><\/strong><span style=\"font-weight: 400;\"> process.\u00a0 By doing so I hope it will be a less scary topic for you.<\/span><\/p>\n<h2 id='are-you-insolvent'  id=\"boomdevs_2\"><span style=\"color: #00ccff;\"><b>Are you insolvent?<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The first step is meeting with the trustee to explore options.\u00a0 The first thing the <\/span><a href=\"https:\/\/www.irasmithinc.com\"><span style=\"font-weight: 400;\">licensed insolvency trustee<\/span><\/a><span style=\"font-weight: 400;\"> (formerly called a <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/bankruptcy-trustee-in-ontario\/\"><span style=\"font-weight: 400;\">bankruptcy trustee<\/span><\/a><span style=\"font-weight: 400;\">) (Trustee) needs to determine is if the person is insolvent.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"http:\/\/www.irasmithinc.com\/blog\/insolvent-definition\/\">Insolvent<\/a> means that you cannot pay your debts as they come due and that if you liquidated all of your assets it would not be enough to repay all of your liabilities.\u00a0 If you&#8217;re not insolvent then you cannot take advantage of the provisions of the <\/span><a href=\"https:\/\/laws-lois.justice.gc.ca\/eng\/acts\/b-3\/\" target=\"_blank\" rel=\"noopener\"><i><span style=\"font-weight: 400;\">Bankruptcy and Insolvency Act<\/span><\/i><\/a><span style=\"font-weight: 400;\"> (Canada).<\/span><\/p>\n<h2 id='what-are-my-options'  id=\"boomdevs_3\"><span style=\"color: #00ccff;\"><b>What are my options?<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re not insolvent the options that are available to you are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">help with your <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/budgeting-2\/\"><span style=\"font-weight: 400;\">budgeting<\/span><\/a><span style=\"font-weight: 400;\">;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">perhaps <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/credit-counselling-canada\/\"><span style=\"font-weight: 400;\">credit counselling<\/span><\/a><span style=\"font-weight: 400;\"> mixed in with that to help you better understand your income and expenses; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">how to live within your means<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Perhaps also there is the opportunity, if you still have a good enough credit score, to get a <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/debt-consolidation-debt-consolidation-loan\/\"><span style=\"font-weight: 400;\">debt consolidation loan<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0 This would be a loan that would be equal to the total of all your other debts but at a lower interest rate and with a smaller monthly payment than the total monthly payments you currently need to make to stay current with all your debts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are insolvent then the options available to a person is either a:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">consumer proposal; or<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.irasmithinc.com\/faq.html\"><span style=\"font-weight: 400;\">bankruptcy<\/span><\/a><\/li>\n<\/ul>\n<figure id=\"attachment_8905\" aria-describedby=\"caption-attachment-8905\" style=\"width: 580px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8905 size-large\" title=\"bankruptcy in canada\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-1024x576.jpg\" alt=\"bankruptcy in canada\" width=\"580\" height=\"326\" data-wp-pid=\"8905\" data-pin-nopin=\"nopin\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-500x281.jpg 500w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-1200x675-cropped.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0.jpg 1280w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" \/><figcaption id=\"caption-attachment-8905\" class=\"wp-caption-text\">bankruptcy in canada<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The purpose and topic in this blog are bankruptcy so that is what I will focus on.\u00a0 There will be other videos made on the topics of a consumer proposal, budgeting, credit counselling and debt consolidation.<\/span><\/p>\n<h2 id='how-does-bankruptcy-in-canada-work'  id=\"boomdevs_4\"><b>How does bankruptcy in Canada work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">So the <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/how-to-file-for-bankruptcy-in-canada-personal-bankruptcy\/\"><span style=\"font-weight: 400;\">personal bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> in Canada process as I mentioned starts with meeting the Trustee to explore your options.\u00a0 Then with the Trustee, determining whether or not you are insolvent and then making the right choice.\u00a0 Does that mean that bankruptcy is the best process for your needs, or can you avoid bankruptcy?.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So given that we&#8217;re talking about bankruptcy in Canada, what are the steps? First, the Trustee will prepare the documentation for your review.\u00a0 The documentation consists mainly of the assignment in bankruptcy document, your statement of affairs and your monthly family budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The statement of affairs is a multi-page document that indicates what your assets are and the names and addresses and individual amounts owing to each of your creditors.\u00a0 Your monthly family budget shows your monthly cash in and cash out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An important part of the <\/span><a href=\"https:\/\/www.irasmithinc.com\/bankruptcy_services-personal_the-bankruptcy-process.html\"><span style=\"font-weight: 400;\">bankruptcy in Canada process<\/span><\/a><span style=\"font-weight: 400;\"> is rehabilitation. Financial rehabilitation.\u00a0 So it is expected upon entering personal bankruptcy in Canada that your monthly family budget will balance.\u00a0 That is your income after tax will be sufficient to pay your monthly family expenses.<\/span><\/p>\n<h2 id='what-does-declaring-bankruptcy-mean-in-canada'  id=\"boomdevs_5\"><span style=\"color: #00ccff;\"><b>What does declaring bankruptcy mean in Canada?<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Once that is all prepared and you&#8217;ve sworn your statement of affairs the Trustee can begin the bankruptcy process itself. That includes e-Filing the documentation I just spoke about with the <\/span><a href=\"http:\/\/www.ic.gc.ca\/eic\/site\/bsf-osb.nsf\/eng\/br03733.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Superintendent of Bankruptcy<\/span><\/a><span style=\"font-weight: 400;\">\u2019s local office.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Superintendent of Bankruptcy local office representative will review it to make sure that it is all in order.\u00a0 Then the local office will issue a certificate confirming your bankruptcy and the appointment of the Trustee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is at the time when the Superintendent actually issues the certificate that the person\u2019s bankruptcy starts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So when bankruptcy occurs then certain things must happen.\u00a0 The bankruptcy administration takes place. The bankruptcy administration will include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Providing the trustee with any <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/bankruptcy-in-ontario-canada\/\"><span style=\"font-weight: 400;\">non-exempt assets<\/span><\/a><span style=\"font-weight: 400;\"> that you may own.\u00a0 The Trustee will sell those assets to raise money to be able to make a distribution of some sort to your creditors.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The next part of the bankruptcy administration is that the bankrupt person must attend 2 <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/financial-debt-counselling\/\"><span style=\"font-weight: 400;\">counselling sessions<\/span><\/a><span style=\"font-weight: 400;\"> for personal bankruptcy in Canada.\u00a0 These two counselling sessions are meant to help the person financially rehabilitate themselves.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You will discuss with the Trustee things such as budgeting, issues that led you into bankruptcy and how you can correct that behaviour and any problems you might be experiencing during the bankruptcy process.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Finally, if all goes well there is the <\/span><a href=\"http:\/\/www.irasmithinc.com\/blog\/undischarged-bankrupt-bankruptcy-discharge\/\"><span style=\"font-weight: 400;\">bankruptcy discharge<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0 That is where the person has made it through and upon their discharge, they are discharged of all of their debts other than those that might be secured, have a trust claim status or meet the definition of those few types of debts such as court fines and penalties that cannot be discharged by way of bankruptcy.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But things like credit card debt and income tax debt are discharged through the bankruptcy process.<\/span><\/p>\n<h2 id='personal-bankruptcy-canada'  id=\"boomdevs_6\"><span style=\"color: #00ccff;\"><b>Personal bankruptcy Canada<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So if you have debt issues meet with a <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Trustee<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0 There is no charge to do so and you will walk away with a better idea of how to fix your debt issues with or without resorting to personal bankruptcy in Canada.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I hope you enjoyed the bankruptcy in Canada video.\u00a0 The<\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\"> Ira Smith team<\/span><\/a><span style=\"font-weight: 400;\"> is available to help you at any time.\u00a0 We offer sound advice and a solid plan for Starting Over Starting Now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We understand your pain.\u00a0 We will make sure that no bill collectors call you.\u00a0 We will take all the headaches and stress you are experiencing off of your hands and put it onto our shoulders.\u00a0 We will fix things so that you can move forward in a healthy way, pain-free, guilt-free and debt-free.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is not your fault that you are in this situation.\u00a0 You could not fix it yourself because you have only been taught the old ways.\u00a0 The old ways do not work anymore. The <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> uses new ways that will return you immediately to a stress-free life while getting rid of your debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So that you can immediately be well on your way to debt and stress-free life in no time, for more information on a no-cost basis, <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">please call us now<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> comprehends just how to do a complex restructuring. However, more notably, we understand the needs of the business owner or the person that has too much personal financial debt. You are worried due to the fact that you are encountering significant economic obstacles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is not your mistake that you are in this scenario. You have been only shown the old ways which do not function anymore. The <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> utilizes new contemporary ways to take you out of your financial debt problems while preventing bankruptcy. We can get you financial debt relief.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The stress and anxiety placed upon you is massive. We comprehend your discomfort factors. We look at your entire situation and also devise a technique that is as special as you and also your issues; economic as well as emotional. The methods we use takes tons off of your shoulders.\u00a0 We devise a financial debt negotiation strategy, we understand that we can help you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We understand that individuals encountering monetary troubles need a reasonable lifeline. There is no &#8220;one solution fits all&#8221; method with the <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\">. That is why we can create a restructuring process as unique as the financial problems and also discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting a solution, <\/span><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">contact the Ira Smith Trustee &amp; Receiver Inc. team today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Call us now<\/span><\/a><span style=\"font-weight: 400;\"> for a no-cost appointment. We will certainly get you or your firm back driving to healthy stress-free operations as well as save you from the discomfort factors in your life, Starting Over, Starting Now.<\/span><\/p>\n<figure id=\"attachment_8905\" aria-describedby=\"caption-attachment-8905\" style=\"width: 1280px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.google.com\/maps\/place\/Ira+Smith+Trustee+%26+Receiver+Inc.\/@43.808316,-79.5366937,17z\/data=!3m1!4b1!4m5!3m4!1s0x882b2f0ae005a70f:0x7fde3a2e744a0e1c!8m2!3d43.808316!4d-79.534505\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8905 size-full\" title=\"bankruptcy in canada\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0.jpg\" alt=\"bankruptcy in canada\" width=\"1280\" height=\"720\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0.jpg 1280w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-500x281.jpg 500w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/02\/bankruptcy-in-canada_0-1200x675-cropped.jpg 1200w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption id=\"caption-attachment-8905\" class=\"wp-caption-text\">bankruptcy in canada<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Introduction The purpose of this Brandon&#8217;s Blog is to explain to you the personal bankruptcy in Canada process.\u00a0 By doing so I hope it will be a less scary topic for you. Are you insolvent? The first step is meeting with the trustee to explore options.\u00a0 The first thing the licensed insolvency trustee (formerly called [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[16,768,2042,13,419,6,20,3206,4078,85,863,990,465,33,1117,11,4079],"class_list":["post-8904","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-bankruptcy-and-insolvency-act","tag-bankruptcy-canada","tag-bankruptcy-discharge","tag-bankruptcy-in-canada","tag-budgeting","tag-consumer-proposal","tag-debt-consolidation","tag-debt-consolidation-loan","tag-how-does-bankruptcy-in-canada-work","tag-insolvent","tag-ira-smith-trustee","tag-licensed-insolvency-trustee","tag-office-of-the-superintendent-of-bankruptcy","tag-personal-bankruptcy","tag-personal-bankruptcy-canada","tag-trustee","tag-what-does-declaring-bankruptcy-in-canada-mean"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/8904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=8904"}],"version-history":[{"count":5,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/8904\/revisions"}],"predecessor-version":[{"id":10302,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/8904\/revisions\/10302"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=8904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=8904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=8904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}