Bankruptcy is a process where consumers and businesses can get rid of or repay some or all of their debts and can be done under the protection of the Superintendent of Bankruptcy and the Bankruptcies Act in Canada. For American readers this under the federal bankruptcy court. There are two types of insolvency, bankruptcy and consumer proposal (two types for American bankruptcies: liquidation and reorganization).
Chapter 7 bankruptcy falls under the liquidation category. It is referred to as liquidation because a bankruptcy trustee may take and sell some of your property in order to pay off some of your debt. Chapter 13 is known as reorganization bankruptcy. This is when you keep all of your property; however, you have to make monthly payments over three to five years. Talk with Hoyes Michalos about bankruptcy options.
Advantages and disadvantages of bankruptcy
Some of the advantages of bankruptcy are having old tax liabilities go away, being able to rebuild your credit sooner and offering you a fresh start. Some disadvantages are lowering your credit for a long time; not being able to use your credit cards and making it impossible for you to get a mortgage. Bankruptcy Toronto can answer your bankruptcy questions.
To conclude, bankruptcy has advantages and disadvantages. Talk with a bankruptcy trustee and find out if bankruptcy is a good option for you!
For a map and directions to the HMA Toronto office:
Hoyes, Michalos & Associates Inc.
8 King Street East
Suite 812 (8th floor)