| Bankruptcy can sometimes be your best way out | | | | If you owe more then $10,000 and your debts |
| of an overwhelming debt situation but you should | | | | have been listed to a collection agency, consider |
| consider how the law forces a Trustee in | | | | debt settlement as an option. A debt settlement |
| Bankruptcy to operate in Canada. | | | | company can help avoid bankruptcy and works |
| The bankruptcy process must be administered by | | | | towards stopping collection calls by acting as your |
| a Trustee in Bankruptcy. Most Trustee's have | | | | agent and negotiating a settlement with your |
| both an accounting designation and a university | | | | creditors. It is an excellent way for you to wipe |
| degree. They must also pass a bankruptcy and | | | | out your debt fast while saving you a substantial |
| law course. When considering filing for bankruptcy, | | | | amount of money. In most cases you pay back |
| always deal with a licensed trustee; that is, a | | | | about half of what you originally owed the |
| trustee who has obtained a license from the | | | | creditors and that should include the fees. I have |
| Superintendent in Bankruptcy pursuant to the | | | | seen people achieve total debt freedom in as little |
| Bankruptcy and Insolvency Act (Canada). | | | | as 30 days if they have access to a lump sum of |
| What most people don't know is that even | | | | money; anyone who is a homeowner or has |
| though you pay a Trustee for filing an assignment | | | | family willing to help should definitely consider this |
| in bankruptcy, they are working on behalf of the | | | | option. Others may take 24-36 months to settle |
| creditors that you owe. That means even though | | | | their debt. Unlike a Trustee a debt settlement |
| you pay the Trustee to provide a fresh start for | | | | company is acting for you only; in most cases |
| you, they are essentially an appointed agent for | | | | fees charged are based on the money you save. |
| the creditors and looking after the best interest | | | | That means that they will work to save you as |
| of the people that you owe. The Trustee works | | | | much as possible. See for more information on |
| towards returning the creditors money back | | | | debt settlement in Canada. |
| through the assets you hand over during the | | | | Always look at all of your options when |
| bankruptcy process. | | | | considering bankruptcy. Generally speaking, if you |
| You will present all of your debts and most of | | | | suffer from financial hardship, have very limited |
| your assets to the Trustee. Very little of your | | | | income and most of your assets qualify as being |
| assets are exempt from bankruptcy. In Ontario | | | | exempt from bankruptcy seizure, then it's a good |
| for example, you may keep your car if it is | | | | idea for you to get a free consultation from a |
| worth less than $5,650, necessary and ordinary | | | | Trustee about going bankrupt. |
| wearing apparel up to $5,650, certain tools up to | | | | Don't be afraid of dealing with your debt. |
| $11,300 if required by your trade, up to $11,300 | | | | Sometimes bad things do happen to good people |
| of furnishings and certain types of life insurance. | | | | or maybe you just made some bad choices in life. |
| Most of your other assets are available for | | | | We are only human. The worst mistake you can |
| seizure and may be lost including your home, and | | | | make is putting it off. Either way if you choose |
| your investments (except RRSP's and pension | | | | debt settlement or bankruptcy, start your path |
| plans in certain cases). As a result, always | | | | to debt freedom as soon as you can and get on |
| consider doing everything you possibly can do to | | | | with living life totally debt free. |
| avoid going bankrupt. | | | | |