3. Learn how bankruptcy works
Question & AnswerI am having money problems. Should I file for bankruptcy?
In Canada, is a legal process. You can only start that process with a . Your trustee will help you understand exactly what you need to do during bankruptcy.
You have to pay your Licensed Insolvency Trustee for their services. Their fee can come out of the that they help you sell.
It’s important to understand the entire bankruptcy process before you file for bankruptcy. Depending on your situation, filing for bankruptcy might take a long time.
Filing for bankruptcy starts the legal process. This usually happens when you talk to your trustee and tell them about your and assets. Then the trustee will make a plan with you about what will happen in your bankruptcy. This will include what you might have to sell, like your house or car.
During this process you:
- must give up your cards
- must file monthly statements of your income and expenses with your Licensed Insolvency Trustee
- might need to sell some of your assets or make arrangements to pay the trustee
- will have the lowest possible (R9)
Most of the time, your creditors will not get all the money you owe them.
After a certain period of time, you will be discharged from your bankruptcy. You will either get an after a certain amount of time, or the court will grant your from bankruptcy.
Once you are discharged from your bankruptcy, you will no longer owe money to most of your creditors.
The time you must wait for a discharge depends on several different things. For example, if is not your first bankruptcy, you will be bankrupt longer and you might have to go to court to discharge your bankruptcy.
If you can’t find a Licensed Insolvency Trustee, you might be able to get help from the Bankruptcy Assistance Program. The Bankruptcy Assistance Program helps people who can’t afford to pay the normal fee for a trustee, or who can’t find a trustee in their area.