What Happens To Your Assets After Discharge
Assets that are part of the bankruptcy stay under the trustees control when your bankruptcy ends. It can take time for all assets to be dealt with.
You must keep making any payments agreed under an IPA or IPO.
Your family home
If your family home has not been dealt with 3 years after the bankruptcy order, the interest may be given back to you.
If the interest in your family home is returned to you, the Land Registry will be told that the property is no longer part of your bankruptcy estate. The trustee will send notice to the Land Registry and the restrictions will be removed.
The restrictions on your business end when bankruptcy ends, unless the official receiver feels youve been dishonest. They can then apply to extend the restrictions
Will My Canadian Student Loans Go Away If I Declare Bankruptcy
If you were a student, either part-time or full-time, less than seven years from the date that you declared bankruptcy, you will have to repay your student loan debt, including the interest charges. Check with Canada Student Loans to learn what they consider to be the last official date you were in school.
If your official last day is under seven years ago, you may still be able to get your student loan debts discharged. You can retain a lawyer and make an application to the court.
You must meet the following requirements:
- You have been out of school for a minimum of five years
- You acted in good faith with regard to the liabilities under the loan
- You have and will continue to experience financial difficulty to such an extent that you will be unable to pay the liabilities under the loan
Where Bankruptcy Doesnt Help
Bankruptcy does not necessarily erase all financial responsibilities.
It does not discharge the following types of debts and obligations:
- Loans obtained fraudulently
- Debts from personal injury while driving intoxicated
It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you didnt, or couldnt pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.
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What Happens Once You File For Bankruptcy
Once your bankruptcy is filed, there is an immediate stay of proceedings. This means that unsecured creditors cannot begin or continue lawsuits, wage garnishees, or even contact you to request payment.
Within five days of the bankruptcy starting the trustee will send a copy of the bankruptcy paperwork to creditors, so they can file a claim.
The trustee will file outstanding tax returns up to the date of bankruptcy. Any outstanding taxes or penalties owed CRA will be included.
You will have certain obligations that you will have to fulfill including a monthly income statement and attending credit counselling sessions.
- Filing bankruptcy immediately halts most creditors from taking your wages.
- Your Trustee will deal with your unsecured creditors on your behalf.
Select A Licensed Insolvency Trustee To Help You Understand Canada’s Debt Regulations
Licensed Insolvency Trustees are the only people licensed by the Canadian Superintendent of Bankruptcy to administer consumer proposals and bankruptcies.
In order to declare bankruptcy or file a consumer proposal vou must work with a Licensed Insolvency Trustee.
Your trustee will provide information about consumer proposals, the process for filing bankruptcy, and about other debt relief options. Also, during the bankruptcy or proposal process your trustee will ensure your rights are respected.
When selecting your trustee, you should keep the following in mind:
- Your trustee should be local or at least easy to access.
- You should feel comfortable with your trustee. Ask them questions about your situation and make sure you understand their answers.
- Confirm they are licensed by the Superintendent of Bankruptcy .
must work with a Licensed Insolvency Trustee when filing bankruptcy in Canada.
Here on Bankruptcy-Canada you can find and connect with one of the top Licensed Insolvency Trustees that is local to you. We list only Trustees who have shown a long standing ability to help people find debt relief.
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What Happens After I Have Applied
Once you have completed your online application, it is sent to the adjudicator at the Insolvency Service. You do not have to go to a court hearing. The adjudicator will check your application to make sure that you cannot pay your debts as they fall due. They will also check that England or Wales is the correct place for you to go bankrupt. The adjudicator will decide whether to make a bankruptcy order within 28 days of receiving your application.
If the order is made you will then have an appointment to see the official receiver who deals with your bankruptcy. Sometimes this will take place over the phone. They will want to go through a long questionnaire with you to look at some personal and financial details. This includes things such as your National Insurance number, details of any pension policies you have, details of any assets you have, and looking at your income and outgoings.
Can I Keep My House And My Car Under Canadian Bankruptcy Rules
Bankruptcy should not impact your secured debts, such as a vehicle lease or a mortgage, as long as you continue to make payments and there is no equity in your secured assets.
In most provinces, you do not lose your house or car when you declare bankruptcy. You can work out arrangements with your trustee and creditors to keep the asset and continue paying the mortgage or loan. Learn more about what assets you can keep in bankruptcy.
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How Can I Find Out More
If you are considering bankruptcy this website and the pages contained herein will provide you with further details and may address many of the questions you may have. We encourage you to give us a call. We are friendly, easy to talk to and we are here to provide advice, solutions and our support.
In addition to giving us a Call our website offers a series of options for our readers to do some of their own research including an ability to review the most commonly asked questions we receive, an ability to post an anonymous question to our Cameron-Okolita Inc.Blog, and the ability to e-mail an Alberta Bankruptcy Trustee in your local area to ask a question or receive some personal advice free of charge.
Taking the first step and making the first contact with a Bankruptcy Trustee is always the hardest. Our goal is to provide friendly, helpful and conscientious service and offer clear explanations and practical solutions for Albertans in need of financial help.
Our initial consultations are always free, and our advice is available on a no obligation basis. Once people make a decision to file bankruptcy, it is pretty common for us to hear, We wish we had contacted you sooner, or We wish we had come to see you sooner.
We encourage you to feel free to contact us and explore the debt relief options available to you.
What Is Involved In Personal Bankruptcy Filings
There are two main bankruptcy filings for individuals: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy filing involves a liquidation of assets, which are then distributed to creditors. The debtor is cleared of all dischargeable debts, usually within four months of filing. A Chapter 13 filing is a reorganization of debt over a three- to five-year period. These are for persons who can pay off their debts after a renegotiation with creditors and the reorganization of assets to debt.
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Bankruptcy Is A Powerful Tool For Debtors But Some Kinds Of Debts Can’t Be Wiped Out In Bankruptcy
By Cara O’Neill, Attorney
If you’re facing severe debt problems, filing for bankruptcy can be a powerful remedy. It stops most collection actions, including telephone calls, wage garnishments, and lawsuits . It also eliminates many types of debt, including credit card balances, medical bills, personal loans, and more.
But it doesn’t stop all creditors, and it doesn’t wipe out all obligations. For instance, you’ll still have to pay your student loans and arrearages for child support, alimony, and most tax debts. Read on to learn more about:
- what you can expect in both Chapter 7 and Chapter 13
- the benefits offered by Chapter 13 alone, and
- things that can’t be accomplished by filing for bankruptcy.
If you’d like step-by-step guidance through the bankruptcy process, read What You Need to Know to File for Bankruptcy in 2021.
Apply To Hm Land Registry
You need to send HM Land Registry either:
- an application for the cancellation of a Form J restriction, if you own your property with someone else
You must include a copy of your court order.
HM Land Registry Bankruptcy UnitSeaton CourtPlymouthPL6 5WS
All forms sent will be destroyed once the registers are updated. You can send copies if you write I certify that this is a true copy of the original together with your signature on the first page.
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How To Decide Whether Or Not To Go Bankrupt
Individuals considering bankruptcy should weigh up the pros and cons discussed above before deciding whether to proceed. If there is no prospect of improvement in their financial situations – and if their debts will take many years to repay – bankruptcy may prove to be a sensible option. However, they should first consider alternative ways of dealing with debts.
Potential bankrupts should assess the consequences of bankruptcy upon the full value of their assets – particularly if they own significant equity in their home. Furthermore, certain professions apply restrictions on membership regarding individuals who have been bankrupt, so it is important to check this aspect as well.
Meet With Your Trustee To Review Your Options
Now that youve selected your trustee you should contact them and schedule a free initial consultation. You will be asked to bring some specific details of your financial situation, including your income and expenses, assets and debts.
At your first meeting, your trustee will review your financial details, and outline the alternatives to bankruptcy that could be chosen in your case, ranging from debt consolidation through consumer proposals and including the bankruptcy process. Your trustee will provide you with information and advice on each which is best for you but the decision will remain in your hands and you will have as much time as you need.
- If you have enough income, debt consolidation or credit counseling are good debt relief options.
- Consumer proposals allow you to keep your house and other assets, subject to the rights of secured creditors.
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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.
Can I Be Made Bankrupt
The minimum level of debt for which someone who you owe money can force you into bankruptcy is £5,000.
The process of being made bankrupt is different.
But high street lenders rarely use this option and will prefer to work with you to find another way to pay off your debts.
You can find out more about what happens if someone tires to make you bankrupt on the GOV.UK website
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How Bankruptcies Work In Canada
Your bankruptcy begins when you file for bankruptcy with a Licensed Insolvency Trustee , as they are the only professionals in Canada that are licensed and regulated to administer bankruptcies. Your trustee settles all of your debts by paying the proceeds of your non-exempt assets to your creditors. A non-exempt asset is an asset that exceeds the equity limit set by your province. For example, if the value of your motor vehicle exceeds the limit set by your province, then your trustee can sell your car to repay creditors.
Alternately, if you would like to keep an asset that exceeds the exemption limit, you can make an arrangement with your creditors to buy back the asset by paying off the amount that exceeds the exemption limit.
Each province provides a list of exempt assets that you can keep regardless of the fact that you declared bankruptcy. While you are bankrupt, you will likely be required to make monthly payments to your trustee.
Is There Anything Good About It
For some people, filing for bankruptcy can be a relief. That’s because as soon as you’re declared bankrupt, people you owe money to have to stop contacting you. No texts or phone calls, no bailiffs at the door.
Bankruptcy was introduced as legislation in the 1980s in large part for this reason – to take the pressure and stress away from people who owe lots of money.
People who file for bankruptcy who are earning money are also allowed to keep some of their income to cover living costs.
But your incomings and outgoings will be assessed and if you have more than Â£20 a month to spare, that will be taken and put towards your debt for three years.
People on benefits don’t have to pay anything.
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A Creditor Makes You Bankrupt
A creditor can make you bankrupt if you owe £5,000 or more to that creditor and you have not been able to agree how to repay the debt. Creditors can club together to make you bankrupt but this is rarely done. You can also be made bankrupt if have an individual voluntary arrangement that fails.
Before applying to make you bankrupt, a creditor usually needs to send you a statutory demand. A statutory demand is a formal demand for a debt of at least £5,000. It requires you to either:
pay the demanded amount
offer to secure the debt against any property you own or
offer to pay the debt in a way that the creditor agrees to .
Statutory demands can be hand delivered or posted.
You can apply to have a statutory demand set aside in certain circumstances for example if your debt is below £5,000 or there is a significant dispute about the money owed. There are strict time limits for doing this. Contact us for advice.
The creditor can apply for a bankruptcy order through the County Court if:
- 21 days have passed since a statutory demand was served and
- the debt is still at least £5,000.
A hearing will be held if a creditor applies to make you bankrupt. It is important to attend the hearing if you want to try and stop a bankruptcy order being made. Contact us for advice if a bankruptcy hearing has been set and you want to defend against being made bankrupt.
Are You Considering Filing For Bankruptcy We Can Help
Being unable to meet your expenses or facing lawsuits for unfulfilled financial obligations is a tough situation to be in and one that you think you cant get out of. Bankruptcy Canada understands your predicament and is committed to helping you resolve your debt issues.
If youre looking for an effective debt relief solution that is best for your financial situation, Bankruptcy Canada can help. Our knowledgeable and highly experienced Licensed Insolvency Trustees will thoroughly evaluate your financial condition and recommend a solution that will best meet your needs. Meanwhile, also feel free to go through our extensive database of relevant articles to find the answers youre looking for.
To consider your options and take the next step towards debt relief, contact us by submitting a short form and one of our Licensed Insolvency Trustees will get in touch with you within 24 hours.
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Complete A Petition & Paperwork
Completing the paperwork to petition for bankruptcy is often the most time-consuming part of filing for bankruptcy. In addition to the petition prepared by your attorney, you will have to provide documentation for your:
Filing your petition for bankruptcy stays collection actions, meaning your creditors cant foreclose on your home, repossess your vehicle, file a lawsuit against you, garnish your wages, or even make collection calls. There is one important exception to this automatic stay: Automatic payments taken out of your paycheck for a 401 loan continue.
The court is required to charge case filing fees and administrative fees. In most cases, you must pay these fees before filing, but you can apply to pay in installments using Form B 3A. Just keep in mind that you must pay the whole amount within 120 days of filing, and you must pay each installment as agreed, or you run the risk of the court dismissing your case.
The fees are as follows:
- Chapter 7: $425 case filing fee, $75 miscellaneous administrative fee, $15 trustee surcharge
- Chapter 13: $235 case filing fee, $75 miscellaneous administrative fee
You may also be charged additional fees for copies of paperwork, filing amendments to your list of creditors, converting a Chapter 13 case to a Chapter 7 case, reopening a closed bankruptcy case, and more. Check out the U.S. Courts Miscellaneous Fee Schedule for a complete list of fees.