What is the personal bankruptcy process?

The personal bankruptcy process begins with the filing of your bankruptcy paperwork with a Licensed Insolvency Trustee. This individual, who is the only professional authorized to administer personal bankruptcies in Canada, will assess your financial situation and work to settle all of your debts by selling any non-exempt assets. In most provinces, these non-exempt assets include luxury items such as recreational vehicles, vacation properties, and expensive jewelry. Your trustee will use the proceeds from those sales to repay creditors, providing you with a fresh financial start. It’s important to note that certain assets, such as workplace tools and personal necessities like clothing and furniture, are usually exempt from being sold during personal bankruptcy proceedings. Overall, working with an LIT can offer relief from overwhelming debt and help you move forward financially.

After the claim is filed.

Once a bankruptcy claim is filed, all unsecured creditors are legally prohibited from contacting you. This means that credit card debt, personal loans, and medical bills can no longer pester you with phone calls and they can’t garnish your wage. However, this protection does not extend to secured creditors – those who have taken a lien on personal property such as a house or car. It is important to continue fulfilling the terms of any secured debts in order to retain ownership of said property. Overall, filing for personal bankruptcy can provide much needed reprieve from financial strain and harassing communication, but it is important to understand the limitations and continued obligations.
Personal Bankruptcy explained

Call Bell Jacoe & Company

Schedule an appointment today to discuss your situation with our legal team. If you’re contemplating filing for personal bankruptcy, we may suggest other solutions or guide you with your legal choices.
Thank you for your interest in the Law Firm of Bell Jacoe & Company. Based in Summerland BC, we have served the South Okanagan since 1990. Our experienced lawyers provide help with all your legal matters, including real estate, wills and estates, powers of attorney, personal injury claims, divorce, general litigation, commercial law, and more.