bankruptcy protection in canada
TRANSCRIPT
Bankruptcy Protection in Canada
BankruptcyCanada.com
Table of Contents
• Page 3: What is Bankruptcy Protection?• Page 4:
Federal and Provincial Law Will Impact Your Bankruptcy Protection• Page 6:
Are There Different Types of Bankruptcy Protection in Canada?• Page 7:
Facts About Bankruptcy Protection
BankruptcyCanada.com
What is Bankruptcy Protection?
• As a status given to a consumer debtor or a business debtor after they have filed bankruptcy, Bankruptcy Protection is set out in the Bankruptcy & Insolvency Act.
• In order to receive this protection an individual or business owner can assign themselves into bankruptcy voluntarily, or in rare cases creditors can petition the court to assign someone into bankruptcy.
• The Canadian insolvency laws that cover insolvency protection were written into law to allow people and businesses who are struggling with their debts to restructure or eliminate their debts so they can begin rebuilding a stable financial future after getting their fresh start through a bankruptcy discharge or receiving the “Certificate of Full Performance” if you have filed a consumer proposal.
BankruptcyCanada.com
Federal and Provincial Bankruptcy Law Will Impact Your Bankruptcy Protection
• Bankruptcy law has bankruptcy protection rules that are included in the Bankruptcy and Insolvency Act, which is a federal law.• Your protection can be impacted by your provincial laws, as
the province sets the assets that you can keep when filing for bankruptcy, although bankruptcy is a federal law.• The provincial sets of laws relating to protection through
bankruptcy or a consumer proposal work in conjecture with the national insolvency protection laws.
BankruptcyCanada.com
Federal and Provincial Bankruptcy Law Will Impact Your Bankruptcy Protection
• If you are seeking bankruptcy or consumer proposal protection as a way of dealing with your debt you need to use the services of a bankruptcy trustee as only a trustee in bankruptcy is licensed to file a bankruptcy with the Office of the Superintendent of Bankruptcy.• Bankruptcy protection gives you protection from creditor
collection actions and gives you protection while you are in bankruptcy and seeking a fresh start; when you receive your bankruptcy discharge (automatic and usually in 9 months) your debts will be discharged; under the bankruptcy laws you can also have your debts restructured through a consumer proposal.
BankruptcyCanada.com
Are There Different Types of Bankruptcy Protection in Canada?
• In Canada you can seek insolvency protection through personal bankruptcy, business bankruptcy or through a consumer proposal, which is part of the Bankruptcy and Insolvency Act.• These are the different types of bankruptcy
protection you can receive in Canada with the help of a licensed insolvency trustee (LIT, or formally known as a bankruptcy trustee).
BankruptcyCanada.com
Facts About Bankruptcy Protection
• When you seek bankruptcy protection in Canada you might lose certain assets although you will receive a discharge of all of your eligible debts and will be able to get out of bankruptcy in as little as 9 months.• At this point you will no longer need bankruptcy
protection because your debts will be wiped out.
BankruptcyCanada.com
Get More Information From a Licensed Insolvency (Bankruptcy) Trustee
• The insolvency laws can be complex depending on your personal situation so it is important you contact a licensed bankruptcy trustee to speak over your financial troubles.• Call 1-877-879-4770 toll free.• If you still have questions you can
ask our licensed insolvency trustee your questions in confidence. Our bankruptcy blog also covers many topics on bankruptcy in Canada.
BankruptcyCanada.com