Do I Qualify For Bankruptcy?
We get asked this question quite often. There is no application process to see if you qualify for bankruptcy, however, there are some criteria you must meet.
In order to make an assignment in Bankruptcy, you must owe at least $1,000 and one of these three situations must apply:
- you are unable to meet your regular payments as they fall due;
- you have ceased making your payments as they generally come due; or
- your assets, if liquidated, would not provide sufficient funds to fully pay all of your debts.
So basically, if you owe at least $1,000, are unable to keep up with your monthly debts payments and do not have assets such as vehicles, house, or investments that you can cash in to pay your debts in full, then you can choose to file for bankruptcy protection. It is your choice whether or not to voluntarily put yourself into bankruptcy and no one can stop you.
As you can probably imagine, many consumers meet this definition but that does not mean they have to go bankrupt. There may be other options available such as debt settlement or consumer proposal so it’s best to meet with a Licensed Insolvency Trustee to help you review your options if you are struggling with debt.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice..