Personal/Corporate Bankruptcy Services

Declaring personal bankruptcy is never an easy choice, but sometimes it’s the best solution to help you get out of debt and start over with a clean slate It is not an easy decision, and isn’t something you should go into without first reviewing all your options. We understand how creditors work and can help determine if it makes more sense to prepare a manageable consumer proposal or look at debt consolidation options.

At Charles Advisory Services, we provide a firm hand in helping you through the bankruptcy process while keeping your long-term financial goals in mind. Our advisors can explain everything so you understand exactly how bankruptcy works and how it will affect you both now and in the future. Our team of knowledgeable insolvency experts will protect your interests and ensure you make an informed decision without regrets.

WHEN SHOULD I FILE FOR BANKRUPTCY?

Bankruptcy may become the best option when you can’t secure funds for debt consolidation, or your creditors reject your consumer proposal and refuse further negotiations. We will ensure all avenues have been explored before advising you to file for bankruptcy.

No matter where you are in the debt management process, we’ll always recommend the best options for debt relief that will have the least impact on your future financial and credit situation.

Bankruptcy might be the best solution for you if:

You have experienced a drastic decrease in your household income, such as job loss
Your debt payments are just covering interest and you have a high debt ratio
You are no longer able to pay cash for everyday expenses and your debt is rising
Your debt is unmanageable, causing issues with your health
You are no longer eligible for financial assistance due to your credit rating and/or debt load

WHAT HAPPENS WHEN YOU DECLARE BANKRUPTCY?

Upon filing for bankruptcy, all civil legal proceedings and unwanted contact from your creditors will cease immediately.

In most cases, people are able to keep their home and car after filing for bankruptcy, as well as many other personal items and professional tools. Bankruptcy in Ontario doesn’t mean becoming homeless. Instead, it gives you the opportunity to remove the stress of high debt, clear your name, and get back to rebuilding your financial status. Without debt payments, you will see an improvement to your cash flow allowing you to manage your daily expenses.

Bankruptcy Services in Toronto

Always remember that there is no shame in bankruptcy. Our team will treat you with the courtesy and respect you deserve, and work hard to help you remove your debt burden as quickly as possible, getting you back on track to reach your financial goals. Give us a call to set up your appointment at (416) 915-9007 or click here.

Commonly Asked Questions

When should I declare personal bankruptcy?

Not everyone can declare bankruptcy. In order to file for bankruptcy, you must:

Owe at least $1,000 in unsecured debt
Be unable to pay the money you owe
Reside or have a property in Canada

A trustee can help you determine if you qualify.

What is a bankruptcy trustee?

A bankruptcy trustee is licensed by the Government of Canada to administer your bankruptcy under the Bankruptcy and Insolvency Act.

How does bankruptcy work?

Bankruptcy is managed by a judge and trustee. The court reviews your financial information to ascertain if you are unable to pay your bills. The court decides if your debt should be discharged and whether you are still legally obligated to pay all your creditors.

How do I file for personal bankruptcy?

When you decide to file for bankruptcy, there are approximately four steps to be taken:

Speak to a licensed insolvency trustee to administer your bankruptcy.
Provide all of your financial information to your trustee so they can review your case and consider if there are other alternatives available and to ensure you meet the qualifications to file for bankruptcy.
Your trustee will file for bankruptcy on your behalf to start your “stay of proceedings.”
Your trustee will file your outstanding tax returns.

Your trustee will continue to deal with your unsecured creditors as required.

What happens when you file for personal bankruptcy?

Once you file for bankruptcy, all unsecured creditors must stop debt collection. You then must:

Surrender most of your assets to be used towards paying off your debt. In most cases, you can keep your primary home and vehicle.
Surrender your credit cards.
Attend credit counselling sessions.
Provide monthly income statements to your trustee.
Make all agreed-upon debt payments.

Your trustee will file your outstanding tax returns. Money owed to the government up until the time of your bankruptcy will no longer be owed. Refunds or GST payments go towards debt repayment with creditors.

How to avoid bankruptcy?

There are four options:

Debt consolidation loan: If you have managed to maintain a good credit rating, a debt consolidation loan is your best bet to avoid bankruptcy. You receive a loan to cover your entire debt at a lower interest rate. You then have one balance to contend with each month, allowing you to focus on paying the principal and avoid spending too much in interest rates.
Debt settlement: Long-standing debt can often be negotiated to pay less or to reduce or remove interest. Working with a trustee, you can come up with an agreement, which often includes an offer to pay your debt in a lump sum at a fraction of what you actually owe.
Debt management plan: Working with a not-for-profit credit counsellor, a debt repayment plan is made with your creditors but with a reduced or zero interest rate.
Consumer proposal: A trustee negotiates a payment plan to pay only a portion of your debt, often as low as a third of your balance.