How to File For Personal Bankruptcy
Need relief from your creditors and wish to file for bankruptcy? Here’s how to proceed.
If you believe that filing for bankruptcy is the appropriate solution to your financial challenges, you must first speak to and meet with a qualified professional of a Licensed Insolvency Trustee (“LIT”).
LITs are highly trained professionals appointed and regulated by the federal government. They are also officers of the court. It is their responsibility to administer bankruptcies and debt settlement arrangements filed under the Bankruptcy and Insolvency Act (“BIA). One of the primary purposes of the BIA is to provide individuals with overwhelming debts the opportunity to access the services of an LIT in order to discharge their debts and to get a fresh financial start. Collins Barrow Brown offers no-charge initial consultations.
If you wish to proceed with bankruptcy, we will guide you through the bankruptcy process. The process can be briefly summarized as follows:
- We will provide you with a list of documents we are required to gather. The documents will provide us with proof of the particulars of your assets, liabilities, income and expenses.
- Under the direction of an LIT, a team member will review your documentation and prepare a draft of the documents that must be signed. You may receive calls or emails in order to clarify questions we have. The LIT will review and approve the documents.
- Once the documents have been finalized, we will promptly contact you to arrange a mutually convenient time to meet to review the documents. Once all of your questions and concerns have been addressed, you will be asked to sign the documents.
- We will then register the bankruptcy with the federal government department that oversees LITs and the bankruptcy process.
- Immediately upon receipt of the registration of the bankruptcy from the federal government, we take the necessary steps to stop creditor collection actions such as collection lawsuits, wage garnishments and bank account seizures. You will have peace of mind and, once again, your entire pay to spend free of creditor seizures!
- Upon registration of the bankruptcy, interest and penalties on unsecured debts, with a few exceptions, will also stop accruing and you will have one affordable monthly payment to the LIT.
- As required by the BIA, we will inform the creditors of your bankruptcy within a week of your having declared bankruptcy. Each creditor receives a summary of your assets, liabilities, budget and a statutory notice. Collection calls will then begin to stop. If creditors continue to call, you may direct them to us and we will instruct them to immediately cease all collection actions.
- We will then work with you to get you and your debts discharged from bankruptcy.
- In summary, a few meetings are required: to instruct, coach and guide you in developing money-management skills, to prepare income tax returns that we must file, and to monitor your income and expenses in order to determine how much you must pay to us as Trustee. The length of time you are bankrupt is primarily determined by your income, and whether or not you have been bankrupt before.
If you are struggling with debt, bankruptcy can help you to quickly regain control of your finances, and eliminate much, if not all, of your financial stress.
Contact Collins Barrow Brown today to find out more about bankruptcy and to determine if it is the best solution for you. We would be pleased to meet with you. The consultation is free. The only thing you have to lose is your debt!
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