Four Basic Canada Bankruptcy Questions to Ask Your Trustee

There are numerous factors that have to be taken into consideration before debtors decide to file for bankruptcy and obtain some much-needed debt relief. One of these factors is the education in the subject matter of bankruptcy that first-time filers need to undergo so they can enhance the outcome of bankruptcy proceedings through prior preparation – this education can start by asking these Canada bankruptcy questions:

Is bankruptcy right for me?

There are no hard-and-fast rules as to who should and should not go through bankruptcy proceedings. There may be some common denominators that persuade debtors into filing for bankruptcy (including divorce, high costs of medical care, loss of income, money mismanagement, and etc.), but the goals and circumstances of each person are unique. Finding out how feasible or practical a bankruptcy filing is in your own case best learned from a qualified professional.

What will I have to give up?

Assets that may have to be given up to the courts for liquidation and debt payment depends on the different aspects of a debtor’s financial situation. While people stand to lose a good portion of their overall assets in bankruptcy proceedings, there are certain properties covered by exemptions. Bankruptcy exemptions and the regulations that support these are not the same for all provinces and territories – your own local bankruptcy office and licensed trustee should be able to enlighten you as to what you may or may not keep in bankruptcy.

Will others know about my bankruptcy filing or declaration?

Theoretically, anyone may be able to access the public database wherein The Office of the Superintendent for Bankruptcy maintains files on bankruptcy filings and consumer proposals after searchers open an account and apply for an insolvency name search. However, it is unlikely for anyone other than creditors, credit agencies, and similar entities to deliberately look for data about your financial situation via the searchable database. Unless you inform your friends or relatives, for example, the chances that they’ll know about it are slim to none.

When will I receive my bankruptcy discharge?

The timeframe (from the points of declaration to discharge) varies from person to person. First-time filers may be discharged within nine months. Those who have filed for bankruptcy more than once or those who earn what is considered excess income and are obliged to give this money to a bankruptcy estate may wait longer than nine months. Your personal and financial circumstances, the court’s findings, and current bankruptcy regulations will influence the time it takes prior to your receipt of a discharge from bankruptcy.

There are so many considerations the potential bankruptcy filer needs to take into account. Filers also need to build an action plan to help themselves fix their debt problems and sustain financial health after bankruptcy.  A journey starts with a single step  – start by finding the answers to these and other Canada bankruptcy questions you may have through a consultation with a licensed bankruptcy trustee.