You may be looking for an answer about what Personal Bankruptcy Montreal means or some quick steps to declare personal bankruptcy Montreal, Canada.
Wondering if you have found the right article. Well, absolutely!
This good read will resolve all your queries regarding personal bankruptcy. But before heading ahead, let’s understand the meaning of Personal Bankruptcy Montreal.
Pros and cons of it in Montreal Canada:
Pros:
- You’ll get relaxation for almost all types of debts including credit card debt, tax debt, overdrafts, ICBC debt, payday loans and much more.
- You can protect your assets and income that otherwise may be vulnerable to seizure by creditors.
- You’ll be stress free from never-ending balances owing, payments or collection actions.
- After filing for personal bankruptcy, harassing creditor calls stop.
- After filing for personal bankruptcy, you’ll get a target date for a clean credit report.
Cons:
- Declaring personal bankruptcy Montreal costs money. You need to make some bankruptcy payments according to your income.
- It may lower your credit rating.
- Well, that’s actually a misconception that you may lose any non-exempt assets. There are many assets you can keep when you go bankrupt.
- You need to perform some duties in a bankruptcy. Reporting your monthly income, attending credit counselling, making payments and providing income tax information are some duties you have to perform.
Now as you know the pros and cons of personal bankruptcy Montreal. Let’s know about the quick steps to declare it Montreal, Canada.
5 quick steps to declare personal bankruptcy Montreal, Canada
Here’s some easy and quick steps to declare personal bankruptcy Montreal Canada. So whenever you file for bankruptcy you will not face any issues.
Step 1: Take consultation from a Licensed Insolvency Trustee (LIT)
The first step is to seek advice from a professional bankruptcy trustee to administer insolvency proceedings. And you know what only a Licensed Insolvency Trustee (LIT) can handle ongoing and pending legal and collection actions. These include lawsuits and garnishes. Consult your local LIT for a free consultation to discuss the perfect debt solution for your situation.
Step 2: Complete your Paperwork
Your licensed bankruptcy trustee will assist with completion of the required forms to declare bankruptcy. Declare for bankruptcy in Canada will require various documents,like:
- An Assignment, in which you need to declare that the bankruptcy trustee is now controlling your property for the benefit of your creditors.
- Another document is Statement of Affairs which includes all your assets, income, liabilities,, and expenses.
- Next is supporting documents that include tax returns, expenses and proof of income and proof of any assets owned by you.
After collecting all documents your LIT will register bankruptcy from the Office of the Superintendent of Bankruptcy. This is a branch of the federal government who supervises such a formal process.
Step 3: Some Bankruptcy duties to be fulfil
As the next step you will be required to complete certain duties that includes:
Counselling – Your LIT will help you build better understanding of financial management through mandatory counselling.
Reports – You need to file monthly reports of your income as well as your expenses.
Payments – You must pay for equity in assets, administrative costs and surplus income.
Taxes – Your bankruptcy trustee will file the personal income tax return of yours for the year of bankruptcy. But you still need to provide the information required.
Step 4: Process completion
Final step in declaring personal bankruptcy is discharge. After completing all your duties you will be eligible for discharge in 9 months or may be longer, depending on your situation. Discharge means that you will be free from any obligation to pay the debts. If somehow your duties are not completed in the given time, a court order will outline the remaining steps to be fulfilled to discharge from bankruptcy.
Step 5: Moving ahead
After all procedures are completed, now your debt burden is relieved. You can focus on rebuilding your credit score. In fact, rebuilding your credit score will be included in mandatory counselling sessions.
Conclusion
Of course, declaring personal bankruptcy Montreal Canada is a last resort, still it may be the correct debt solution for you to overcome from your debt burden. Still, if you want to know more about the personal bankruptcy process, simply contact your LIT for free consultation.
