Bankruptcy is a sad economic fact of Canadian life. For the most part insolvency is not about money It is about circumstances in life. Today, approximately 90 per cent of all bankruptcies are consumer not business bankruptcies. Bankruptcy may be one of the most difficult decisions some people will ever have to make. It is not regarded as the easy way out — on the contrary it is often regarded as the only way out.
As a prerequisite to bankruptcy it is necessary for a person or business to be insolvent. To be insolvent simply means to:
The law allows for a formal process of declaring insolvency by filing either a consumer proposal or an assignment in bankruptcy. Declaring insolvency is a last resort for the overcommitted debtor because of the social stigma attached to this drastic measure and the detrimental effect on the bankrupt’ s credit rating. Bankruptcy may be the only alternative for individuals or families that do not have enough income to cover their regular living expenses and negotiate repay of their debts in full.
Bankruptcy allows an insolvent debtor to obtain relief from a financial crisis, with any non-exempt assets distributed in an orderly fashion among creditors.
Having reviewed your situation with our professional advocate you must now consider all your options and pick one that will work for you at this point in your life. This is not an easy task, but it must be done so you can move on and stop living a limited life under with your secret debt burden.
647-284-3810
1 Hunter St, E Hamilton, Ontario
inquiry@debtmasters.com