If you’re reading this article, you’ve likely tried to gain control over your overwhelming debt but haven’t been successful.
Many debtors believe they need to hire a bankruptcy lawyer in order to file for bankruptcy in BC. But that is not the case at all. What you need is a Licensed Insolvency Trustee – and the process is a lot simpler than you might otherwise believe.
In this article, we’ll set out three easy steps on how you can get started.
But before we do, whether your reasons for having to consider bankruptcy are due to a recent divorce, using high-interest credit cards to live on, illness, the loss of your job, or an otherwise reduced income, you need to understand…
Bankruptcy can happen to anyone.
That’s right. Young or old, married or single, sick or healthy, good or bad… Bankruptcy doesn’t discriminate. And for various reasons, many hard-working Canadians find themselves living paycheque to paycheque until something gives.
But rest assured, by reading this article…
You’re taking the right first step in seeking professional help.
That’s because while bankruptcy is a difficult choice to make, it offers debtors significant advantages. Among them are the following:
Protection from your creditors.
Bankruptcy is a legal process. Once you file, an “automatic stay of proceedings” takes immediate effect. This means your creditors must stop any action to enforce the debt against you. You won’t have to worry about any collection calls, wage garnishments, frozen bank accounts, or legal actions while you try to organize your financial affairs.
The elimination of your unsecured debts.
With a few exceptions, a bankruptcy gets rid of your unsecured debts. Once your bankruptcy is discharged, you will no longer be required to pay back the unsecured debts that the bankruptcy dealt with.
The ability to “start fresh.”
Once your unsecured debts are extinguished, you will have the opportunity to begin again with a clean slate and rebuild your credit.
How To Declare Bankruptcy in British Columbia
While the decision to file may be one of the most difficult financial ones you’ll have to make, the actual bankruptcy process itself is quite simple. You can get started in three easy steps.
Step #1. Contact a Licensed Insolvency Trustee.
If you want to file for bankruptcy in British Columbia, you will need to connect with a Licensed Insolvency Trustee (LIT).
LITs are federally-licensed and federally-regulated. They are also the only professionals authorized by the Canadian government to assist debtors like you with filing for bankruptcy.
The LIT’s job is to administer your property in a trust, from which creditors will receive at least some of what they are owed during your bankruptcy.
When selecting an LIT, you’ll want to consider the following:
- Pick an LIT that is local to you, or at least easily accessible, since you will have to attend in-office sessions with your LIT.
- Make sure that you feel comfortable communicating with the LIT you choose. It’s important that you are able to ask questions and understand the answers you receive.
- Confirm the LIT is licensed by the Superintendent of Bankruptcy by searching the LIT’s name on the Government of Canada’s LIT register.
Step #2. Meet With Your Licensed Insolvency Trustee.
The first consultation with an LIT is free. The LIT will review your financial circumstances and provide you with all debt relief options available to you, as well as seasoned, unbiased advice as to the one they think is best for you and your family. You’ll walk away knowing the pros and cons of each option, and will have full and final say as to the debt solution you want to choose.
The best part is that LITs offer the full range of debt relief services, so they can assist you no matter which avenue you choose.
Step #3. File For Bankruptcy.
If you ultimately decide to file for bankruptcy, your LIT will request some information from you, such as your personal details, a list of creditors, and a list of your assets.
After preparing the necessary paperwork, your LIT will review it with you to ensure its accuracy, and verify your understanding. All that’s left is for you to sign off, and your bankruptcy begins.
What happens after I file for bankruptcy?
As part of your bankruptcy, you will have to complete various obligations, such as, for example, monthly income statement reporting and attendance at mandatory credit counselling sessions. A first bankruptcy is typically discharged in 9 months’ time, after which the unsecured debts covered in your bankruptcy will be cancelled.
Contact a Licensed Insolvency Trustee today.
Every debtor’s situation is unique. If you want to learn more about the advantages and disadvantages of bankruptcy or find out whether bankruptcy is really the best next step for you and your family, contact us today. And remember, the sooner you reach out, the more debt relief options you may have available to you. Let us help you get started on the journey to better financial health.