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How To Declare Personal Bankruptcy In Quebec

Northwest Territories Bankruptcy Exemptions

Personal bankruptcy in Canada, How much does it cost?

In the Northwest Territories, property exempt from seizure in bankruptcy is set out in the Exemptions Act and applies to the equity in an asset. Equity is the difference between the value of the asset and what you owe on the asset.

Example: If you have household furniture and equipment in your home worth $5,000 and you do not owe any outstanding loans on these items, the equity you have is $5,000. In the Northwest Territories, the exemption for the total of these items is $5,000. In this case, you would be entitled to keep these possessions and your creditors cannot take them from you.

Filing For Bankruptcy In Sept

Are you considering declaring;bankruptcy in Sept-Iles? No matter how difficult the situation may seem, your debt troubles can be managed with help from your local MNP LTD Licensed Insolvency Trustee. Every year, thousands of Canadians turn to us to help them get through various types of financial difficulties — and you can rely on us too.

Our local MNP LTD office in Sept-Iles employs knowledgeable and courteous professionals with experience in filing for bankruptcy that work and live in the same communities as you. Don’t let having debt encompass your life. There are options — discover them with MNP LTD now.

What Are The Consequences For A Bankrupt Of Not Being Discharged

Not being discharged has important consequences for a bankrupt.

A person who is bankrupt may not borrow more than $1,000 without informing the lender that he/she is bankrupt. Failure to do so is an offence under the BIA that is liable to a fine, imprisonment or both.

Information pertaining to bankruptcy remains on an individual’s credit file for 6-7;years following discharge of a first-time bankrupt. Times may vary across provinces/territories.

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Small Business Vs Personal Bankruptcy In Canada

When we talk about small business bankruptcy, there’s not much difference between personal bankruptcy and that of a small business if the business is not a corporation. Generally speaking, bankruptcy is a legal avenue for corporations or individuals to pursue relief from unpayable levels of debt.

Once an application for bankruptcy is filed a “stay of proceedings” goes into effect which prevents unsecured creditors from starting or continuing legal action against the creditor to recover debts. In the case of personal bankruptcy, the stay of proceedings prevents a creditor from the garnishment of wages of the debtor.

For unsecured creditors, the stay of proceedings levels the playing field so that one creditor does not gain an advantage over others in terms of repayment of debt. Note that bankruptcy proceedings can be initiated by unsecured creditorsa creditor may file a petition to place a debtor into bankruptcy if it is owed more than $1,000 and the debtor has recently committed acts of bankruptcy, such as failing to pay liabilities, committing acts of payment fraud, avoiding creditors, secretly disposing or hiding assets, etc.;

Secured creditors are usually not affected by bankruptcy as they have the right to recover collateral posted by the individual or corporation as security for debts, such as a mortgage on the debtor’s property or liens on business equipment.;

You May Make Surplus Income Payments

Personal Bankruptcy in Canada. Get The Facts

When you file for bankruptcy, you must do the following:

  • disclose to the LIT information about all of your assets and liabilities ;
  • advise the LIT of any property that was sold or transferred in the past few years;
  • surrender all your credit cards to the LIT;
  • attend the first meeting of creditors ;
  • attend two counselling sessions;
  • advise the LIT in writing of any address changes;
  • if required, attend an examination at the Office of the Superintendent of Bankruptcy; and
  • assist the LIT as needed in administering your estate.

You may be required to make additional payments to your LIT for distribution to your creditors.

In addition to paying the LIT’s fees, you may be required to make additional payments to your LIT for distribution to your creditors. These are called surplus income payments.

Each month during the bankruptcy process, you must submit a copy of your pay stubs and proof of other income to the LIT. The LIT then calculates your surplus income.

Surplus income is the part of your earnings that exceeds the amount of income a family needs to maintain a reasonable standard of living. This amount is set by the OSB annually. The larger your family, the more you are allowed to keep; the more you earn, the more you are required to contribute.

In other words, if your household income exceeds the level set by the OSB, then you must make additional payments to your LIT during your bankruptcy.

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Consultations With A Restructuring Advisor Or A Trustee

You will have to attend two types of consultations with a restructuring advisor or trustee. During the first consultation, you will receive advice on how to organize a budget.

During the second consultation, your trustee or advisor will explain to you the causes of your over-indebtedness and will give you advice and solutions. These two consultation meetings are mandatory in order to be entitled to an automatic discharge at the end of the bankruptcy process.

How Funds Are Recovered And Distributed

To help creditors recover some of what they are owed, non-exempt property owned by the bankrupt as of the date of the bankruptcy, or acquired prior to the bankruptcy discharge, may be seized and sold by the LIT. Exempt property includes property protected by applicable provincial and federal laws , property held by the bankrupt in trust for another and, in some cases, goods and services tax payments.

In addition, the LIT determines the bankrupt’s “surplus” income, i.e., the amount beyond what the bankrupt requires to maintain a reasonable standard of living. The bankrupt must pay this amount to the estate for distribution to the creditors after the costs of administration are deducted.

After the LIT has sold all of the bankrupt’s property, he or she must prepare a final statement of receipts and disbursements and a dividend sheet. The dividend sheet contains a list of creditors who will receive dividends and the amount to which they are entitled. You will be paid the dividends to which you are entitled before the bankruptcy file is closed, which is before the discharge of the LIT.

Once the secured claims have been settled, the dividends are distributed in the order set out in section;136 of the

These prior claims are subject to certain conditions and this list is not exhaustive.

The law gives priority to the claims of preferred creditors over those of other unsecured creditors.

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Bankruptcy Exemptions For Farmers

Up to 160 acres of land is exempt if your principal residence is located on that land and is part of your farm. Any personal property necessary for your farming operations over the next 12 months is also exempt from bankruptcy. For more information about bankruptcy exemptions in Alberta, please speak to a local Licensed Insolvency Trustee.

How Long Does Bankruptcy Last

How long does bankruptcy last in Canada?

If this is your first bankruptcy, the process can take anywhere from 9 to 21 months. If no one objects to your bankruptcy, your discharge will take place 9 months after the opening of your file. However, if you have excess income, the release will take place 21 months later.

If this is your second bankruptcy in Quebec, the process lasts a minimum of 24 to 36 months. For a third bankruptcy, a court hearing will take place 12 months after the opening of your case. During this hearing, the duration of the bankruptcy will be established. The duration is generally 12 to 36 months.

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Bankruptcy Exemptions In Nova Scotia

  • No limit on clothes for you and your family
  • No limit on fuel and food for your family
  • Up to $5,000 in household furniture and appliances
  • One motor vehicle up to $6,500
  • All medical and health aids for you and your family
  • Farm equipment, fishing nets, or other tools of your trade up to $7,500
  • No limit on grain and seeds or livestock for domestic use by you and your family

For more information on bankruptcy exemptions in Nova Scotia, contact a local a BDO trustee near you.

Is Personal Bankruptcy The Only Solution

No. There are alternatives to bankruptcy in Canada. Licensed Insolvency Trustees will look at all your options when they complete their financial assessment. Some individuals will qualify for a debt consolidation loan, a credit counselling program or a consumer proposal. Each of these options have their own set of pros and cons and not everyone will qualify for all of these options.

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Preferences Or Transfers At Undervalue

A transfer of property can be set aside if, in the three months prior to the date of the initial bankruptcy event, the debtor made a payment to one creditor that favored the creditor over others. .

A disposition of property or provision of service for which no consideration is received by the debtor or the consideration received is less than the fair market value of the consideration by the debtor can be set aside if made in the one year before the initial bankruptcy event. If the creditor is not at arms length from the debtor, the disposition of property can be reviewed by up to 5 years before the initial bankruptcy event if the debtor was insolvent or was rendered insolvent by the transaction or the debtor intended to defraud, defeat or delay a creditor.

If you have reasonable grounds to believe that the bankrupt or someone else is guilty of an offence under the BIA or any other statute, you should contact the LIT in charge of the estate or the OSB.

How Mnp Ltd Can Help

When Is The Right Time to Declare Personal Bankruptcy?

Whether declaring bankruptcy is the right choice or another solution would suit your situation better, you can count on MNP LTD to explain the options available to you and assist with your decision on which action to take. Don’t let debt stress take over your life: find out how our Licensed Insolvency Trustees can put you on the path to financial stability. Arrange your free confidential consultation today.

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Mail Documents To Your Trustee

The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one.

Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you donât send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts.

I Made An Advance Payment To A Company That Has Declared Bankruptcy What Can I Do

If you pre-paid for a service, you become a creditor and the LIT will send you a Proof of Claim form with your creditor’s package. Follow the instructions on the form and in the package, and make sure you have all of the required documentation proving that the debtor owes you money.

To be recognized as a creditor and to be eligible to share in the distribution of dividends, if any, you must provide the LIT with a completed Proof of Claim.

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In Case Of Personal Bankruptcy Can I Keep One Or More Credit Cards

No. If you declare a personal bankruptcy in Quebec, you are no longer eligible for credit. Regardless of whether your balance is $ 0 or $ 1000, you will have to hand over your credit cards to your trustee.

For more information on personal bankruptcy in Quebec or if you would like to be accompanied by an honest and professional bankruptcy trustee, do not hesitate to contact N. Séguin Inc. at ;.

Alternatives To Declaring Bankruptcy

How long does personal bankruptcy last in Canada

A Consumer Proposal;involves negotiating a partial payment of your debts in return for your creditors forgiving the remaining amount. A Consumer Proposal has a major advantage for sole proprietors and partners in that unlike declaring bankruptcy, your personal assets are not liable for seizure.

From a creditor standpoint, a Consumer Proposal is preferable to bankruptcy in that it allows them to at least recover a percentage of the outstanding debt, while in a bankruptcy proceeding they may lose all of it.

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Does Filing For Bankruptcy In Canada Affect My Spouse

Home >>How to File Bankruptcy>> Does filing for bankruptcy affect my spouse?

Filing for bankruptcy in Canada does not directly affect your spouse. Your debts are your debts; only you are responsible for them. If you go bankrupt, your debts are discharged. Your husband or wife or common-law spouse is NOT responsible for your debts.

Many people believe that because you are married, your spouse is automatically responsible for your debts. This is not true. Often collection agents, when they are trying to collect from you, tell you that if you dont pay they will get the money from your spouse. This is a collection agency scare tactic; they can only go after you for your debts.

The only exception is if your spouse has co-signed or guaranteed your debt. For example, if you took out a loan and your spouse co-signed for it, it is also legally their loan. If you both have a credit card on the same account, the credit card debt legally belongs to both of you.

Remember, your spouse is liable for the debt, not because they are your spouse, but because they have signed for the debt.

There may be an indirect impact on your spouse in the future if you try to obtain financing jointly As you rebuild your credit, you might not be eligible to co-sign a loan or obtain credit. Or, you may be subject to higher interest rates. This may affect your spouse if you jointly wish to apply for credit in your future.

Are You Getting A Refund

Refunds that are issued as a result of returns for years prior to the year of bankruptcy are considered to be the property of the estate in bankruptcy. As a result, these refunds will be sent to the trustee. Any refunds issued in relation to returns for years subsequent to the year of bankruptcy will be sent to you, unless the trustee has obtained a court order.

For the year of bankruptcy, any issued refund related to the pre-bankruptcy return will be sent to the trustee. Issued refunds related to the post-bankruptcy return will also be sent to the trustee if your bankruptcy assignment date is July 7, 2008, or later. Post-bankruptcy refunds that are issued for bankruptcies with an assignment date prior to that will be sent to you, unless the trustee has obtained a court order or has provided us with an Authorization and Direction letter.

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Should You Be Looking Into Other Debt Solutions

Filing for Bankruptcy is a legal process which can help free you from most of your debts. It is regulated by the Bankruptcy and Insolvency Act. The first and most important step is to contact your MNP LTD Licensed Insolvency Trustee, who will present you with all of your financial options based on the assessment of your current debt situation. In the majority of cases, after hearing the alternatives we have to offer, most people find that alternatives to declaring bankruptcy work better for their particular situation.

Delivery And Sale Of Property

Does Bankruptcy Erase Tax Debt?

The trustee uses the list of your property to determine with you which property will be sold to pay your creditors. However, some of your property is protected by law, which means that it cannot be taken by your creditors or sold.

For example, you can keep these items:

  • your RRIFs and RRSPs, other than the amounts you paid into them less than 12 months before the bankruptcy
  • up to $7,000 worth of items used for your basic needs and those of your family and are in your main residence. If these items are worth less than $7,000, other personal items can be included until the value amounts to $7,000. You cant keep any items that have a hypothec on them.
  • the food, fuel, towels, sheets and clothing necessary for you and your family
  • the any work equipment you need for your professional activities or occupation, such as a toolbox, computer or even a car, unless there is a hypothec on them.
  • a portion of your salary determined by law

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How Long Will My Bankruptcy Show Up On My Credit Report

This will depend on which credit bureau youre with, but generally, the bankruptcy will stay on your for about six years. Equifax keeps the first bankruptcy on file for at least 6 years and the second bankruptcy for a whopping 14 years. TransUnion is the same for the second bankruptcy, but a first bankruptcy might be kept up to 7 years.

to learn more about how long information stays on your credit report.

This doesnt mean that you cannot borrow money for that period of time, just that it might be a little bit more difficult and expensive.

Trying to rebuild your credit after a bankruptcy? Try reading this. ;

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