About Bankruptcy in Ontario
What is it?
Bankruptcy is a legal process that stops collection action against a debtor in order to for a debtor to rehabilitate himself or herself and start fresh without the burden of debt.
How much will it cost?
The Bankruptcy Trustee's fees may vary, however, in most circumstances the cost is approximately $1,575.00. This includes the filing fee paid to the government, two financial counsellng sessions required under the 'Bankruptcy and Insolvency Act (BIA)' and GST. However, we realize that most people may not have funds available to pay the fee up front, so we will arrange a monthly payment schedule you can afford.
What is Surplus Income? What happens to my wages while I am bankrupt?
You don't have to turn over your wages to the Trustee. However, if you have a high level of income (according to standards set by the 'Office of the Superintendent of Bankruptcy'), you may be required to make what is referred to as a surplus income payment for the benefit of your creditors. Each person's financial situation is different and circumstances relating to the surplus income will vary for each individual. Your Trustee will be able to advise if such a payment by you is required.
How do I begin the process of filing for bankruptcy?
You can begin the process by either calling our bankruptcy offices in Toronto, Ontario and speaking with one of our staff about your current financial situation or you may download our application form, fill it in and send it to us by email, fax, mail. We will review your information and contact you to arrange a meeting.
Which assets am I allowed to keep?
You are allowed to keep Household Goods up to a value of $11,300.00, Personal Effects up to a value of $5,650.00, a Motor Vehicle up to a value of $5,650.00, and Tools of Trade up to a value of $11,300.00. This is assuming you have not given the asset as security for a loan. In addition, you may keep your interest in your life insurance policies if the beneficiary is spouse, parent or child. Assets exempt from seizure also include pension plans or locked in retirement savings plans (however, contributions made in the 12 months prior to the date of filing bankruptcy are excluded from exemption and can be recovered by a trustee).
How long will I be in Bankruptcy?
In most cases, if it is your first bankruptcy, you will receive an automatic discharge after 9 months (21 months if there is Surplus Income). If it is your second bankruptcy, you are eligible for a discharge after 24 months (36 months if there is Surplus Income). If your discharge is opposed, the Court may decide the terms regarding your discharge.
Will my creditors stop harassing me?
Yes. Our office will help deal with your creditors. All actions against the bankrupt must stop once the filing has been submitted; this includes garnishments and legal actions.
How will this affect my credit rating?
A bankruptcy will remain on your credit report for a period of 6 years from the date of your discharge. However, once you receive your discharge, you may begin to re-establish your credit.
What happens if someone has co-signed one of my debts?
If anyone has co-signed or guaranteed any of your debts, your filing does not release them from their responsibility. However, a supplementary card holder may not be legally responsible for the primary card holder's debt.
What debts cannot be included?
There are some debts that are not discharged, including, a fine or penalty imposed by a court; an award of damage by a court for bodily harm, sexual assult; alimony; support or maintenance of a spouse or child; a debt arising from fraud, embezzlement, misappropriation, or defalcation while in a fiduciary capacity; any debt for obtaining property by false pretenses or fraudulent misrepresentation; student loans if the bankruptcy occurs either before the student leaves school or within 7 years of leaving school.
Please contact us for immediate assistance.
Call (416) 967-6772 or email us at: manageyourdebt@sterncohen.com
We provide you with:
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