Personal Bankruptcy Toronto – A Fresh Financial Start

If you are considering filing for personal bankruptcy, find out what is included from a Toronto Licensed Bankruptcy Trustee (LIT) along with most FAQ's.

Many hard-working, honest people never imagined that they would find themselves in such a financial crisis. They have always done their best to meet obligations and all of a sudden, often for reasons beyond their control, they find themselves unable to pay their debts and lack the assets to cover their outstanding debts.

The Bankruptcy and Insolvency Act (BIA), also sometimes still referred to as the “Bankruptcy Act, or the BIA,” was created by the federal government in large part for the specific purpose of helping unfortunate, honest Canadians solve their financial troubles. The relief that is provided in a bankruptcy (or a proposal, or a consumer proposal) comes from something called a Stay of Proceedings which goes into effect as soon as the process is filed, in other words immediately.

The Stay of Proceedings (or Stay) is a very powerful factor:

• It is automatic – you don’t have to ask for it, every person gets it as soon as they file for bankruptcy.
• It is immediate – protection from your unsecured creditors as soon as you file.
• It eliminates the threat of any legal action taken by your unsecured creditors.
• It stops the enforcement of any Court Order with regards your unsecured debts.
• It stops your wages from being garnisheed.
• It releases your frozen bank accounts.
• It stops harassing phone calls from creditors.
• It stops any other aggressive debt collection tactics.
• It stops any further interest charges by your creditors.
• It protects some of your assets, depending on exemption laws on our province.
• Though the main purpose of the bankruptcy process for you is to help you solve your financial troubles the system does not take everything you own and put you out on the street. Some people do have to give up certain assets, but most people don’t lose anything.

It will give you:

The legal protection you need while you regain financial stability, and
The opportunity to eliminate unsecured debt and emerge with a clean slate, and
Some private debt and credit counselling to assist you to regain and keep control over your future financial life.