Learn more about the personal bankruptcy process
When someone declares personal bankruptcy, he surrenders his assets to a bankruptcy trustee. The trustee will then use those assets to pay off most, if not all, of your debts using your assets. As a result, you become debt free in the process and can get a fresh financial start. In Canada, the personal bankruptcy process is governed by the Federal Bankruptcy and Insolvency Act, or BIA. It was implemented to help protect the rights of honest, hard working people that have fallen into insurmountable debt due to misfortune. At the same time, the creditors involved in the matter are also treated fairly so that a mutually beneficial agreement can be made.
To be eligible for PB in Canada you must not have the means to pay off your debts and your debts must exceed $1000. You must also live in Canada or, at the very least, do business in the country. Interestingly, bankruptcy trustees are federally licensed. This allows fees to be affordable because the fees they charge are constantly regulated. There are many advantages to declaring PB. For instance, since PB is a legal process, you cannot be harassed by debt collectors. Your wages also cannot be garnished. However, it will also affect your credit history, and will remain on your record for several years. Moreover, you can only declare PB on unsecured debts, such as personal loans and credit card debts. You are not be allowed to declare PB on secured loans, such as on a mortgage or car loan.
We are an establishment that allows people to search for an affordable bankruptcy trustee in their area using a designated trustee search directory. Our service is free of charge, and you can contact us anytime to learn more about our services or the personal bankruptcy process.
