Instant Steps of Bankruptcy Process in Montreal

Seldom is a sail invariably smooth, and the fiscal ups and downs characterising life are a testament to its rugged terrains.

Dealing with the spectre of bankruptcy hovering over one’s head can be intimidating, but adequate adherence to the bankruptcy process Montreal will substantially mitigate the discomfiture and apprehensions incidental to the subject.

As you remain stuck in this swamp, you must be confounded by a flurry of questions pertaining to the nitty-gritties of the process and the feasible expedients to end the ordeal.

So, purge yourself of every worry, for this article encompasses all you need to know to chalk out a smart strategy if you find yourself perched on the precipice of bankruptcy!

What Does the Bankruptcy Process in Montreal Entail?

Going bankrupt is certainly not on anybody’s bucket list. But you can always be hammered by circumstances that strain you financially, thus bringing you on the brink of closure.

An individual is declared insolvent when they cease to fulfil the monetary obligations to their creditors, rendering their assets subject to confiscation in order to facilitate debt resolution.

Thus, voluntary declaration of bankruptcy can help in catalysing a good riddance from a significant chunk of your debt. Considering the same, here are some steps to be taken care.

Steps To Streamline Your Efforts in The Right Direction:

1. At the outset, it is ideally recommended that the debtor consult a licensed insolvency trustee to acquire lucid insights into the peculiarities of the case and map the way forward.

The trustee, authorised by the superintendent of bankruptcy in Canada will assist you wade through an otherwise daunting amount of paperwork in a relatively hassle-free manner and resolve your qualms by virtue of his technical prowess. They will also enhance your understanding by decrypting jargons from a layman’s perspective.

2. Going forward, the debtor is required to document his debts and potential assets in collaboration with the trustee, who’ll consequently execute the paperwork requisite for the initiation of the bankruptcy process.

This will render you immune to any prospective lawsuits on the horizon by your creditors.

3. The trustee will help you distinguish between your seizable and non seizable property. It is the former that is leveraged to compensate your creditors and generally alludes to unessential /dispensable property, supernumerary income, life insurance policies etc.

These will be subsequently sold to your creditors by your trustee who’ll also be responsible for undertaking a formal appraisal of your assets for them.

4. As a debtor, you are statutorily obligated to attend two consultation meetings with your trustee wherein you’ll be intimated about course-corrective measures to preclude similar instances of bankruptcy in future.

After the aforementioned steps are brought to a successful execution, you’ll be eligible to get discharged from bankruptcy.

Your debt clearance will be processed within a span of 9 to 21 months or after a court judgement. And this might grant you absolute or provisional discharge contingent on the nature of your debt payment.

Things To Consider Before Filing Bankruptcy

While voluntary declaration of bankruptcy could expedite your debt resolution, it is equally important to be aware of:

1. Cost-benefit ratio of going through exhausting and not infrequently tedious proceedings.
2. Eligibility parameters for availing bankruptcy
3. Magnitude of adverse impact on your credit assessment report
4. Amount of property you could lose in the process.

Frequently Asked Questions

1. How to find out if my trustee is licensed?

In order to identify a licensed bankruptcy trustee in Canada, you can refer to the official Superintendent of bankruptcy website for the purpose.

2. Is automatic discharge possible if it is my second bankruptcy?

Yes, automatic discharge is possible even after your second bankruptcy but post a period of 24 to 36 months from the date of your bankruptcy.

3. Does bankruptcy clear all my debts?

No, Bankruptcy can only clear your dischargeable debts such as personal loans, tax debts etc.

4. Will filing bankruptcy cost me an arm and a leg?

The fee charged by trustees varies from case to case, the expenses may be slashed in case of acute financial obligations back home.

Conclusion:

Declaring bankruptcy might seem counterintuitively suicidal, however in the grand scheme of affairs, it might end up as a prerequisite for a healthy fiscal budget.

Conclusively, readers are advised to exercise educated discretion and analyse best and worst-case scenarios before jumping on the bandwagon.