Bankruptcy Trustees Toronto—Best Trustees in Bankruptcy Toronto
Bankruptcy Trustees Toronto or trustees in bankruptcy Toronto are people who are experts when it comes to dealing with debt problems through bankruptcy declaration. In Canada, a Licensed Insolvency Trustee is the only one who is approved by the federal government to administer this process.
Are you one of those who are currently suffering from stress-related to major financial troubles? Do you feel like there is no hope left for you? It is common and natural to feel this way. Nevertheless, you do not have to face your debt issues alone. There are professionals whose job is to assist people like you. Every problem has a solution. In fact, the first thing to do if you are experiencing this is to look for a Licensed Insolvency Trustee or LIT.
What is Bankruptcy?
If you are already at the point where your problem has become too overwhelming and unmanageable, it is time to think about your options. This is when your salary can no longer keep up with your bills and your everyday expenses are already affected as well. Filing bankruptcy is one of the most effective options to create a fresh financial start. This means you will be able to repay all of the money you owed and eliminate your debt. This is like ending the nerve-racking cycle of a financial burden.
The process involves meeting with a trustee to discuss your overall financial situation. If you have decided to choose this debt-relief option, you will be asked to complete a form where you will fill in your financial details, especially the list of your assets and liabilities. Your trustee will submit the completed form to the Office of the Superintendent of Bankruptcy Canada (OSB). From there, upon approval, you will be declared bankrupt. Your lenders will be informed. There could be a meeting with your creditors scheduled and you must attend however such meetings rarely take place.
In addition, the process includes an examination with a representative from the Office of the Superintendent of Bankruptcy where you will be asked about why you chose to declare bankruptcy, the disposition of your properties and your financial conduct.
You will have to present the complete list of your assets because your Licensed Insolvency Trustee will sell your properties, with some exemptions. He will also manage the money to be distributed to your creditors as payment. Ask your trustee for clarifications about which of your properties would be excluded.
One of the duties expected from you is to attend two counselling sessions. During the sessions, you will be enlightened about your overall financial situation, including why you have to undergo the procedure and the things you need to do to become financially responsible, as well as how to avoid debt problems in the future. Aside from attending the financial counselling sessions, you have to surrender your credit cards and aid your Trustee in managing your assets to pay your debt.
The first bankruptcy will take up to 9 to 21 months while the second takes 24 to 36 months. You will be granted an automatic debt discharge if you have done your duties well and there are no objections from your Licensed Insolvency Trustee and lenders. Otherwise, you have to attend a discharge hearing at the court where your Trustee will present a report describing the circumstances surrounding the whole bankruptcy process. This includes your attitude towards your duties, your conduct before, during, and after the procedure and if you have committed any offence.
Toronto Trustees in Bankruptcy: Questions to Ask
One of your Licensed Insolvency Trustee’s main responsibility is to help you understand the overall procedure and to correct misconceptions. This will enable you to fulfill your duties correctly and for you to be discharged from debt with ease. Even though the term bankruptcy is encircled with humiliation, always remember that it could be the best solution to resolve your financial troubles and will give you the chance to have a fresh start.
Am I qualified to file for bankruptcy?
Insolvent individuals can declare bankruptcy. You should be a resident in Canada, your unsecured debt should be more than $1,000 and the value of your properties will not be enough to repay the money you owed when sold.
Will I lose all of my assets?
Your savings account, tax refunds and investments which are considered as savings will be used to pay your debt. If the net equity value of your home is more than $10,000, and your car surpasses the $6,600 exemption limit, you will have to surrender them along with your cash on hand minus the value needed for your sustenance. On the other hand, your clothing, household appliances worth less than $13,150, and some of your insurance policies will be exempted.
Which of my debts will be eliminated after discharge?
Most of your unsecured debts will be covered, namely credit card and utility bills, payday and personal loans, income tax, medical bills and some student loans. On the other hand, mortgage, and car loans are considered as secured debts and will not be included, along with spouse and child support.
How long will the process last?
Your unsecured debt will be eliminated once you are discharged (automatic or not). Again, you need to ensure that you have done all of your responsibilities to be granted a discharge and prove that you are financially reliable. This involves giving your full cooperation to your Licensed Insolvency Trustee. Also, always heed their advice about your financial situation.
Other factors that affect the chances of acquiring an easy and quick discharge are the following:
- Any objections from your creditors or Trustee
- An increase in your income (which will also increase your surplus income payments)
- The number of bankruptcies you declared in the past (the Judge will determine the duration for more than two bankruptcies filed)
Remember that the law requires you to declare bankruptcy through a Licensed Insolvency Trustee. You cannot file it on your own. This is why you need the services provided by the Trustees in Bankruptcy Toronto (Licensed Insolvency Trustees). Richard Killen and Associates, certified Bankruptcy Trustees Toronto, can help you achieve your financial goals right away.