Bankruptcy is a solution that is available if you lack the resources to pay your debt obligations or to file a proposal. The prime principle behind personal bankruptcy in Vancouver or any part of Canada is to help a person burdened with debt make a fresh start financially. In personal bankruptcy, the bankrupt surrenders his non-exempt assets to a Licensed Insolvency Trustee in exchange for getting relieved from his debts that are discharged in a bankruptcy. This process will provide you with immediate protection from your creditors, in that collection calls, most garnishments, and legal actions will stop.
To file for personal bankruptcy in Canada, one must have lived or done business in the country within the last year, and secondly and most importantly, the person must be insolvent. To be insolvent means:
You must owe at least $1000;
The person is unable to pay debts;
The value of debt is more than the value of assets in possession of the debtor.
How Do I Go Bankrupt?
If someone wants to declare himself/herself bankrupt, then there are specific steps that one needs to follow:
Step 1: Meet with a Licensed Insolvency Trustee or Administrator to discuss your financial situation and available options.
Step 2: Provide the Licensed Insolvency Trustee or Administrator with copies of all relevant financial information and, if viable, finalizing the terms of your Consumer Proposal.
Step 3: Sign the Proposal documents, which are then filed with the Office of the Superintendent of Bankruptcy. Once your Consumer Proposal is filed, you receive immediate protection from creditors.
Step 4: The creditors receive the Proposal from the Licensed Insolvency Trustee for review. They have 45 days to reject or approve it.
Step 5: Complete Proposal payments if it is approved by the creditors to be debt-free.
Once your bankruptcy is filed, you receive immediate protection from your creditors as all the legal actions taken by them would be put on hold.
How Long Will the Process Take?
Depending on the nature and extent of your debts and amount of your surplus income:
For a first time bankrupt: 9 to 21 months (with surplus income)
For a second time bankrupt: 24 to 36 months (without surplus income)
When it comes to bankruptcy/restructuring in Canada, two primary laws govern personal bankruptcy in Vancouver and the rest of Canada, namely, Bankruptcy and Insolvency Act (the "BIA") and the Companies' Creditors Arrangement Act (the "CCAA").
Bankruptcy and Insolvency Act (BIA) is the principal federal legislation in Canada applicable to insolvencies.
If ever you’re looking for legal guidance on the subject of personal bankruptcy in Vancouver, feel free to get in touch with Campbell Saunders Ltd., and we will make sure that all your bankruptcy queries are answered.
Campbell Saunders Ltd. can assist you with your personal bankruptcy in Vancouver.