Bankruptcy Help Line: How to Declare Bankruptcy

A bankruptcy help line is where you can ask for assistance on how to declare bankruptcy. If you have already chosen this as a debt relief solution, you may make use of the services of trustworthy bankruptcy agencies.

The term bankruptcy is feared by many because of its disadvantages. Some avoid it because it can result in a drastic effect on the credit score. Nevertheless, you have to keep in mind that you should not compare your financial situation to others and always consider all of the important points before making a decision to get out of your financial problem.

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The first thing to do is to visit bankruptcy consultants, also known as Licensed Insolvency Trustees or LIT. You may schedule a free consultation to talk over your available alternatives and bankruptcy administration. Take note that Licensed Insolvency Trustees are bankruptcy counselors who are regulated by the federal government so you can be sure that you are dealing with the right people for your debt problems.

Bankruptcy Advisory Service: What are the things to clarify?

Here are some of the questions that you can ask from your financial advisor, credit counsellor, or Licensed Insolvency Trustee when going through the different debt-relief options, including bankruptcy: 

  • How much of my debt will be forgiven or repaid?
  • What are the types of debts applicable to these programs?
  • How long will it take for me to be discharged from debt?
  • How much should I pay every month?
  • What are the consequences of missed payments?
  • What will happen if my financial status worsened and I can no longer meet the required monthly payments?
  • After declaring bankruptcy/ making a consumer proposal / enrolling in a debt management plan, will my creditors continue to contact me to collect the payments?
  • Will I lose or keep my assets? What are the exemptions?
  • How will this affect my credit score?
  • What are the extra fees/ charges?
  • Can my creditors withdraw from the settlement or agreement after it has been made?

Bankruptcy Services Companies

Your financial advisor or Trustee will discuss everything and help you understand the important points of each option. In filing for bankruptcy, it is best to work with a Licensed Insolvency Trustee as they are the only professionals appointed by the federal government to administer a bankruptcy procedure. 

What are the reasons why you should seek the assistance of a Licensed Insolvency Trustee? 

A Licensed Insolvency Trustee is a financial relief expert. A trustee is a licensed professional who has the experience, extensive education, and training to oversee debt relief programs and provide financial advice and services. The Office of the Superintendent of Bankruptcy or OSB has granted a trustee the license to carry out their responsibilities while maintaining high standards. Due to this, you can be certain that you are working with qualified individuals to aid you with your financial difficulties. 

Everything a Licensed Insolvency Trustee does is regulated by the government. They must uphold the standards expected from them when giving debt relief services to debtors. You can file a complaint with the Office of the Superintendent of Bankruptcy (OSB) in case you have experienced difficulties with a trustee. Their fees are also regulated and they cannot charge more than what is required to their clients. 

They can deal with your lenders. You do not have to put up with facing with your creditors. One of the main advantages of acquiring the services of a Licensed Insolvency Trustee is that you will not be forced to deal with them directly—your trustee will do all the work for you. This is instant protection against your creditors once you have chosen to file bankruptcy or a consumer proposal. All dealings will be directed to your trustee so your stress will be lessened. 

It is so easy to find an Insolvency Trustee near you. You can search for them online through the LIT registry.

Bankruptcy Solution: What happens if you file?

After much consideration and discussion with your trustee, and you end up choosing to declare bankruptcy, you will be required to fill important forms. It is considered official after the documents are submitted and filed with the Office of the Superintendent of Bankruptcy. Upon the declaration, all talks about your debt will be done through your Licensed Insolvency Trustee, though you have to attend a meeting with your creditors. In addition to this, your payments will also be made to your trustee. Your lenders can no longer demand repayments directly from you and they cannot take a portion of your income. You will be protected from lawsuits. In case you feel that your creditors are still trying to harass you, your trustee will become a mediator.

The difference between a consumer proposal and bankruptcy is that you will have to give up some of your assets to make repayments. Again, your trustee will administer this procedure. He can also explain which of your properties are exempted from the law. You also have to attend two sessions of financial counselling.

Additional Payments

The process will require you to make surplus income payments. This means additional payments will be given to your LIT to be distributed to your lenders. This will be calculated as you present a copy of your income. If your salary goes up or you have acquired an additional source of income, you are expected to contribute more and give additional payments. This will depend on the size of your family. Ask your Licensed Insolvency Trustee for clarifications about surplus income. 

Declaring bankruptcy entails several responsibilities expected from a debtor. This includes: 

  • Surrendering credit cards to your trustee
  • Releasing all relevant information to your LIT, including assets and liabilities and changes in address
  • Attend a meeting with your lenders
  • Attend the counselling sessions
  • Work with your LIT during the whole process

Discharge from Debt 

The period of discharge after the declaration will take between 9 to 36 months for the first and second bankruptcy. You will be granted an automatic discharge if no one opposes it and you have fulfilled your responsibilities. However, there may be times that you will not be qualified to get an automatic discharge. Talk to your trustee on how to obtain one. The court will decide if you will be given an absolute or conditional discharge.

To ensure that you will have a stress-free experience as you go through the declaration of bankruptcy, always look for bankruptcy experts or a bankruptcy agency in your area. For the best bankruptcy help line and gain a full understanding of how to declare bankruptcy, contact Richard Killen and Associates, a Licensed Insolvency Trustee. 




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Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.


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