Filing personal bankruptcy is a formal process under the Bankruptcy and Insolvency Act filed by a licensed trustee in bankruptcy. Filing personal bankruptcy can help you to become discharged from most of your debts.
Advantages of filing personal bankruptcy:
- Prevents creditor legal or collection action against you
- Allows an honest but unfortunate debtor to get a fresh start
- Discharges you from most of your personal debts
Bankruptcy is the right option if you
- cannot pay your bills
- are unable make a reasonable proposal to your creditors
How much does it cost to go bankrupt?
There is no set cost or fee for filing personal bankruptcy. The amount you pay depends largely on your income and your ability to pay. If you are thinking about filing personal bankruptcy, see how much your monthly surplus income payments may be.
How long is the bankruptcy process?
- First time bankrupt without surplus income 9 months,
- First time bankrupt with surplus income 21 months
- Second time bankrupt without surplus income 24 months,
- Second time bankrupt with surplus income 36 months
- Third time or more bankrupt minimum of 36 months
There is a standardized formula to determine the amount you are required to pay to creditors thus it will be the same from trustee to trustee.
If you have tax debt that is more than $250,000 the Canada Revenue Agency considers you a ‘High tax debtor’ and you must attain a discharge from the court.
Learn more about dealing with tax debt when filing personal bankruptcy.
Welker & Associates can address your money problems and help you to understand your debt settlement options. Arrange a free consultation today.
