No. Unless you are a well-known individual (i.e., politician, famous actor or performer, head of a major corporation) or have significant assets, it is likely that only your present and potential future creditors will know that you've filed for bankruptcy. That being said, an Assignment in Bankruptcy is a public document that is filed with Industry Canada, and the proceeding will be noted on your credit report for six years after discharge.
Not necessarily so. Most individuals are able to rebuild quickly after a bankruptcy; however, individuals coming out of bankruptcy are often faced with having to post security for credit and/or having to pay higher interest rates. Our experience is that individuals discharged from bankruptcy eventually are able to obtain mortgages, car loans/leases, and credit cards and return to normal life.
No. We hear this frequently, though, and we think we know why. A first-time bankrupt qualifies for an automatic discharge nine months after filing. The bankruptcy then remains as a notation on the credit report for six years after discharge. Nine months + six years = roughly seven years. The fact is, your discharge from bankruptcy - or the point when your debts disappear - can happen in less than one year.
No. Federal and provincial law allows you to keep your clothing, household furnishings and appliances, equity in a motor vehicle, equity in your principal residence and tools to enable you to earn your living. If you do have assets that are not protected under law, you may make arrangements to buy them back from the Trustee.
If you own a house that is mortgaged or a car that is leased or held as security under a conditional sales contract, you will often be able to continue on with the existing payment arrangements, as long as your payments are up-to-date and the lender is agreeable.
No. You continue to collect your pay cheques. You will report your monthly income to the Trustee every month and, possibly, make a contribution to the Estate (called "Surplus Income") if your net income exceeds a set guideline.
No. Your debts do not attach to anyone else when you go bankrupt. Also, your creditors cannot seize assets that belong to your spouse. If, however, your spouse or another individual has co-signed or guaranteed your debt, the creditor(s) may pursue the co-signer or guarantor for payment in full.
We encourage couples to come in together so that we may look at the "whole picture" and help you find a realistic solution for the entire family.
Canada Revenue Agency ("CRA") as an unsecured creditor, is no different from your bank or credit card company. Personal income taxes owing can be included in bankruptcy, right up to the day you file. And, if CRA is garnishing your income, the bankruptcy filing will stop this immediately.
Student loan debts are included in a bankruptcy in that collections by student loans are stopped during the period of the bankruptcy and until the trustee has closed its file. If you have been a full- or part-time student in the seven years prior to your bankruptcy, however, your student loans will not be discharged like your other debts. Upon discharge, you will have to pay student loans in the ordinary course.
If you ceased to be a full- or part-time student at least seven years prior to bankruptcy, your student loans will be discharged.
Definitely not . Bankruptcy is not a reflection of who you are as a person. The vast majority of individuals filing for bankruptcy are honest, hard-working people who are acting in good faith. You may have hit a bump in the road like relationship breakdown, divorce, illness, family emergency, unexpected loss of employment and addictions. Or, maybe you’re struggling with debts that have been growing over a period of many years and you have simply reached a point where you are “in over your head” because your minimum monthly payments aren’t even covering interest charges.
"Whatever the reason, you're not alone. Bankruptcy can provide you with a fresh start in life. Let Campbell Saunders help you take your first step toward financial stability."
