It’s question we get a lot. “Do you need a bankruptcy lawyer to file for bankruptcy in Canada. Get the answer below!
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Do you need a bankruptcy lawyer?
Actually, you don’t need a bankruptcy lawyer in Canada when filing for bankruptcy or consumer proposal. In fact, lawyers cannot even file for bankruptcy in Canada, what you need is a licensed insolvency trustee. While some lawyers may be able to help you with your debt situation, the actual filing of the documents is not what they do. Alternatively, it is absolutely what we do full-time. We’ve been helping thousands of Canadians resolve their debt situation for more than 20 years.
It is important to note that bankruptcy is often the last course of action. We often recommend other processes such as consumer proposal first. Why is that? Because with consumer proposal you will start the process of rebuilding your credit immediately and you can then apply for credit in as little as three years.
Many people feel that their debt situation is so out of control that bankruptcy is their only option, but in our experience, this is far from the truth. In fact, we help considerably more people through the consumer proposal process than we do with bankruptcy.
If it is determined that bankruptcy is your only course of action, as licensed trustees we will ensure that you are able to keep your assets that are exempt from the bankruptcy process. Certain assets are protected by law but some may need to be surrendered, and if you choose to do so, repurchased. We will work with you to determine which assets are the most important to you and your family. You will also be able to keep your RRSP contributions except for those that are made in the last 12 months.
There are certain duties that are required of you when filing bankruptcy such as: you must attend 2 mandatory counseling sessions, provide monthly income and expense statements, provide income tax information for the year in which you are filing bankruptcy, and you will also have to keep us notified as to your current address and contact information.
The length of time that you will be in the bankruptcy process depends on whether this is your first or second time and the level of your income. Typically for someone with low income, the bankruptcy process with be about nine months.
People are often concerned with their credit report and how bankruptcy will affect it. The bankruptcy will be listed on your credit report for 7 years after the discharge. If this is your second time it will remain on your credit report for 14 years. However, even though the bankruptcy will be listed on your credit report, often we can discuss with you the necessary steps it takes in order to rebuild your credit history.
Your bankruptcy will end when the time frame has passed, and you have completed all of the required duties. Once the bankruptcy is discharged, you will then be released from your legal obligations to repay debts that were included in the bankruptcy.
To get started on the road to debt freedom today, you will need to contact us and start the process immediately. We’ll completely explain all your duties and responsibilities and will be there with you throughout the entire process. We’ve been doing this a long time and we want you to know that you are in good hands. Take a moment and read all the reviews on this page and you’ll see that we really do take your situation seriously. Call us today at 1-844-482-3328