Bankruptcy is a legal process that helps individuals who are unable to pay their debts. In Canada, if you owe at least $1,000, reside or have assets in Canada and are insolvent (you can no longer pay your debts), you may file for bankruptcy. When you file bankruptcy in Canada, you assign non-essential assets and surplus income to your creditors in exchange for which your debts are released
You can also make a formal offer to creditors to settle debts under conditions other than the original terms by making a consumer proposal.
If you are considering filing for bankruptcy in Canada, you must go through a Licensed Insolvency Trustee (LIT). LITs are licensed and regulated by the Office of the Superintendent of Bankruptcy (OSB) to help Canadians get out of debt. They can help you file for bankruptcy or submit a Consumer Proposal to your creditors. LITs perform a legal role in bankruptcy filing. They are federally regulated professionals. They are the only professionals authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as consumer proposals and bankruptcies. At BSCC we work with LITs in support and on behalf of our clients. When clients come to us before they approach a Licensed Insolvency Trustee, we can facilitate not just dealing with an LIT, but what comes after the bankruptcy proceedings or consumer proposal has been settled from a legal standpoint. Building back your credit worthiness and better managing your financial situation, are all areas where LITs do not involve themselves, and this is where organizations like ours can provide support and assistance. This is why when clients go through us for Consumer Proposals or Bankruptcies, we can assist with being your guide and representative throughout the entire process – and work with the respective officers that are required for the proceedings.
Contact us to learn more about what is involved in this process. We provide COST-FREE, NO OBLIGATION initial consultations to understand your individual situation. Only by learning about your specific circumstances are we in a position to suggest necessary steps and solutions.