Frequently Asked Questions
Find the answers to your most common questions, from the Licensed Insolvency Trustee at Westgeest & Associates.
What is Bankruptcy?
Bankruptcy is a legal action that is available for resolving your debts. One of the main reasons that people proclaim bankruptcy is to have the chance to totally free yourself from an unmanageable debt load and start over.
In order to declare personal bankruptcy, you must be insolvent, meaning you must owe at least $1,000 or not be able to meet your regular payments.
What Is The Purpose Of Bankruptcy?
Bankruptcy is a procedure that allows a debtor to be freed of overwhelming debt while still giving creditors fair treatment in what they are owed.
How Do I Declare Bankruptcy?
You have two options for declaring bankruptcy. At Westgeest & Associates, we know that the most common method is to voluntarily enter into bankruptcy with the help of a trustee to get all necessary papers prepared and signed. The other option is for your lenders to ask the court to make an order that you are bankrupt. Either way, a Licensed Insolvency Trustee is required to provide the bankruptcy.
After I Declare Bankruptcy, Will My Creditors Stop Harassing Me?
Yes, they will! By law, all actions to get you to pay your creditors must stop as soon as the bankruptcy documents are filed. This does not apply to protected lenders such as banks or finance businesses.
How Much Does Bankruptcy Cost?
Trustee costs, filing fees, and counselling fees are regulated by the government. These fees can be calculated and worked out by scheduling an appointment with Westgeest & Associates today.
What Happens to My RRSPs?
Thankfully, you are allowed to keep all funds that you have in your RRSP. The only exceptions are the contributions you made one year prior to your date of bankruptcy.
How Do I End My Declaration of Bankruptcy?
You must meet certain criteria in order to receive an automatic bankruptcy discharge. This includes completing two counselling sessions, you have not been bankrupt before, and no one opposes your discharge (your creditors, trustee, etc.). For further information, contact Westgeest & Associates today.
What is Counselling?
It is required, by the Bankruptcy and Insolvency Act, that you attend two counselling sessions in order to be qualified for a discharge from bankruptcy. In general, these sessions deal with financial planning, the cause of your bankruptcy, budgeting, and other issues that pertain to your scenario. The counselling takes place between you and your Licensed Insolvency Trustee.
The first session has to be held between 10 and 60 days following the date of bankruptcy, while the second one has to be held no later than 210 days following the date.
What Happens to My Income throughout Bankruptcy?
After you have declared bankruptcy, your earnings, such as self-employed earnings, commissions, or incomes and salaries, go directly to you. There are rules in place that provide funds to your lenders, but we will meet with you to discuss the intricacies of your individual situation. Contact us today.
What Happens if I Don’t Finish My Bankruptcy or I’m Not Discharged?
If you don’t finish your tasks when bankrupt, you will not be released from bankruptcy, but your Licensed Insolvency Trustee will be released from your file. In addition, your lenders can again take any assets in excess of your exemptions to please their claims.
The complete performance of your bankruptcy, or the getting of your discharge, is what eliminates your obligation to repay your lenders. If you do not obtain your discharge, the lenders can resume collection for complete payment after the Licensed Insolvency Trustee ceases to be involved in the bankruptcy proceedings.
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