A Bankruptcy is considered a debt restructuring option for consumers who have “no other options” and when their debts have become overwhelming. In Canada over 80,000 Canadians filed for Bankruptcy last year. The Bankruptcy process is the most severe form of restructuring and is filed under the Bankruptcy and Insolvency Act whereby a Bankruptcy Trustee takes controls of your assets before you are discharged from your Bankruptcy.
A Bankruptcy (depending on your surplus income) for a first time Bankrupt is up to 21 months and up to 36 months for the 2nd time bankrupt. Alternatively, you can file as many Consumer Proposals as you want without having more severe consequences for the insolvencies.
There are many things that can affect the outcome of your Bankruptcy but here are some highlights for you to consider:
Through this process a debtor is required to give “Full Disclosure” of all their assets, liabilities, income & expenses as well as business holdings as part of the process.