There are many misconceptions about filing bankruptcy. I find often when meeting with clients in the Windsor, Chatham and Leamington offices that many people have “heard through the grape vine” a lot of wrong information. Bankruptcy laws have changed in the last couple of years. There are options for dealing with your debt, and depending upon your information, sometimes bankruptcy may make the most sense.
Bankruptcy Facts
You Do Not Have to Lose Everything….
Most personal belongings are exempt from seizure in bankruptcy under Ontario law. You may keep your clothes, furniture and appliances. It is possible to keep your owned vehicle if the black book value of your vehicle is under $5,650 (exemption amount) in Ontario. If you have a financed vehicle you must maintain the payment to keep it. Most mortgage holders will allow you to keep your home if you file bankruptcy, however, you would have to pay the equity in your home to your bankruptcy estate if you wish to keep your home.
Legal action stops…
Phone calls from collection agencies and creditors stop. Legal action such as wage assignments and garnishments stop. Creditors are unable to register a lien against your property after filing bankruptcy.
You Get a Fresh Start….
Bankruptcy is a legal process that eliminates most if not all of your debts. Credit Counselling is provided to help you rebuild and repair your credit. You may qualify for a 9 month bankruptcy if you complete your duties, have minimal surplus income (bring home less than $200 on average above the government guideline) and if no creditors object to your discharge. If you filed a previous bankruptcy then your discharge may be in 24 months if there is no average surplus income.
It may be time to call 310-PLAN and book a no cost, no obligation consultation if you are falling behind with your monthly payments. I would be very happy to review your information and explain all of your options including bankruptcy in full detail
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