Posts tagged bankruptcy Saint John
Advantages of Filing a Consumer Proposal vs. a Bankruptcy
How Will A Consumer Proposal or Bankruptcy Affect My Credit Rating?

The proposal stays on your credit file for 3 years from the date of completion. A first bankruptcy will stay on your credit report for a period of 6-7 years (depending on Province) from the date of discharge. A second bankruptcy will be reflected on the debtor’s credit report for a period of 14 years from the date of discharge.

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Announcement - New Designation for Insolvency Professionals

On December 2, 2015, the Office of the Superintendent of Bankruptcy Canada released Directive 33, Trustee Designation and Advertising, updating the designation to be used by Licensed Trustees with regards to the advertisement, promotion, and communications related to their services.  All trustees holding a valid license will now adopt the professional designation “Licensed Insolvency Trustee”, which replaces the previous designation of “Licensed Trustee in Bankruptcy”.

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My Bank Account Is Always In Overdraft

The interest charged by banks to those carrying an overdraft can range as high as 20% so it can be a very expensive form of credit. If you find that you are carrying an overdraft balance and running out of money between pay periods this can be an early warning sign of future financial difficulties.

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Is Bankruptcy My Only Option?

Bankruptcy is not the only option available to resolve the overwhelming debt.  Your trustee can also put together a settlement proposal to your creditors whereby you pay a portion of what is owed and the creditors agree to write off the remaining balance.  This process is known as a consumer proposal and it provides you with the same legal protection as a bankruptcy.

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Am I Responsible For Business Debts If I File For Bankruptcy?

Commonly, shareholders provide personal guarantees for bank debt and equipment or vehicles financing or leases.  In addition, some suppliers may require personal guarantees. If you are a director of an incorporated business, you may be jointly and severally liable with the Company for certain debts. 

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Can I Claim Bankruptcy a Second Time?

Yes, you can declare personal bankruptcy even if you have been bankrupt in the past as long as you have been discharged. A second time bankrupt you will be eligible for an automatic discharge after 24 months as long as you do not have surplus incomecomply with all of the terms and cooperate with your trustee in the administration of the estate.

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Does My Bankruptcy/Proposal Trustee Work For Me or My Creditors?

The Trustee’s job is to administer the BIA in relation to your bankruptcy or proposal filing.  In this role, the Trustee works for the Court, the creditors and for the bankrupt or proposal debtor and the Trustee is accountable to all parties for its administration.  The Trustee should administer your bankruptcy or proposal in a fair and even-handed manner so that your rights and those of the creditors are respected.

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Will My Friends and Family Know I Went Bankrupt?

Bankruptcy filings are a matter of public record and are kept on file with the Government of Canada through the Office of the Superintendent of Bankruptcy.  These records are accessible for a fee but how many people, other than bankruptcy trustees, would incur the expense or even think or know where to look?

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Can Bankruptcy Deal With My Student Loans?

Individuals who file a personal bankruptcy or consumer proposal, at least 7 years after ceasing to be a part-time or full-time student, are released from paying their Canadian student loan debt.

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