If you were wondering about how to file for personal bankruptcy, this video will give you the basic steps in less than 4 minutes.
Step 1: Self-Assessment
Get brutally honest with yourself – are any of the following things happening?
- You’ve been unable to make one or more payments on your mortgage or a loan.
- Credit cards are constantly at or near their limits.
- You are using credit card advances to pay bills.
- Creditors have handed your account onto a collection agency.
- You have been sent a notice of legal action relating to a debt.
Any of these or any combination are signs that you have a debt problem. Unfortunately these kinds of problems don’t just go away, in fact they just tend to get worse.
Step 2: Consultation with a Licensed Insolvency Trustee
Talk to a debt professional to gain access to the widest range of potential solutions – that professional should be a Licensed Insolvency Trustee (LIT).
You may end up not needing a bankruptcy but to get the full picture go straight to an LIT and find out what your options are.
While selecting an LIT to talk to bear in mind the following:
- Choose a local LIT – if you decide to move forward with a solution you will have to visit their office
- Interview the LIT – you should feel comfortable with them and feel understood
- Check that they are licensed by the Superintendent of Bankruptcy
Once you have chosen an LIT to talk to, call them up and book a free consultation. Remember you are under no obligation to do anything as a result of meeting with them.
However they will ask you to bring information about your financial circumstances – this will include income, expenses, assets and debts.
At this meeting, the LIT will be able to review your specific circumstances. They will also explore which debt solution option would be the right one for you.
Step 3: Preparation
If bankruptcy is your best option, your LIT will help you complete a form which will include the following:
- Personal information (name, address & date of birth)
- A list of creditors
- A list of assets
With the form complete they will prepare the paperwork, go over the bankruptcy process again and then you are ready to file.
Step 4: Going Through the Bankruptcy Process
Once you have filed the following happens:
- An immediate ‘stay of proceedings’ – creditors cannot take legal action against you
- Collections agencies cannot contact you anymore
- Most wage garnishments stop
- Your LIT will file any outstanding tax returns (up to the date of filing)
- You will complete a monthly income statement for the LIT
- You will attend 2 credit counselling sessions
- On your behalf, your LIT will deal with your unsecured creditors
Step 5: Discharge
In most cases, your file will be discharged in nine months. Your LIT will counsel you in ways to rebuild your credit score after your discharge.
And that’s it. But remember…
- Step 1: Decide you want to address the problem… and
- Step 2: Reach out to someone.
Why not do that right now? The form on this page will help you set up a time and day for a free consultation.