COVID-19 UPDATE
To Our Valued Customers,
Here at D & A Macleod, we want to reassure that we have gone to great lengths to protect our staff, customers and the public during these difficult times. Even in the worst of times, we are still here to serve all your financial needs. We are available for phone and video meetings, as well as in-person with physical distancing. Please let us know how we can help you today by contact us here.
Let us help you find a new beginning™
Make a commitment to yourself. Declare that everything is under control and that tomorrow really is a new beginning™.
Personal Bankruptcy & Insolvency Solutions in Ottawa
Filing for Bankruptcy is a Last Resort. We can help.
Personal bankruptcy is a legal process that provides financial relief to those who are unable to pay their credit card balances, payday loans, lines of credit and other unsecured debts. If you are insolvent and ineligible to file a consumer proposal or consolidate your debts, the team at D. & A. MacLeod Company Ltd. can help. Contact us today to schedule a free consultation with one of our licensed insolvency trustees in Ottawa or at one of our locations across Eastern Ontario.
How Does Filing for Bankruptcy Work?
If you decide to file for personal bankruptcy, you will need to surrender certain assets to a licensed insolvency trustee. The assets will be distributed to your creditors in accordance with the Bankruptcy and Insolvency Act (BIA). In exchange, you’ll be freed from the burden of most, if not all, of your unsecured debts.
For the duration of your bankruptcy, you’ll be required to report your income to your licensed insolvency trustee. While you’re allowed to keep a portion of your income, any amount over the set limit (referred to as surplus income) must be paid to your creditors.
Furthermore, you’ll need to attend two financial counselling sessions to be eligible for discharge from your debts. At D. & A. MacLeod Company Ltd., our advisers will teach you how to rebuild your credit and put you in the best position to enjoy long-term financial stability.
How Can D. & A. MacLeod Help?
Since licensed insolvency trustees are the only professionals in Canada who are authorized to administer a personal bankruptcy, our friendly team has become a trusted source for effective insolvency solutions in Ottawa and surrounding communities in Eastern Ontario. We have more than 65 years of experience helping hard-working people like you get the fresh start they deserve.
From helping you make the decision to declare bankruptcy to preparing the final statement of receipts and disbursements, our trustees will be with you every step of the way. In addition to filling the necessary paperwork on your behalf, you can count on our licensed insolvency trustees to ensure your rights are respected throughout the bankruptcy process.
What are the Warning Signs of Impending Bankruptcy?
There are many warning signs of an impending personal bankruptcy situation. Some of these signs are tremendous financial and emotional stress resulting from:
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Difficulty paying bills
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Selling your assets to meet payments to your creditors
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Borrowing on your credit card(s) & obtaining new ones
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Paying only the minimum amount due
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Using one credit source to pay for another
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Relying on payday loans
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Credit refusal and legal problems
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Legal actions and creditors garnishing your pay
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Income tax arrears
Do I Qualify?
If you owe at least $1,000 and you are unable to pay your debts, and your assets would not cover the debts you owe (i.e., you are insolvent), you will qualify for personal bankruptcy. However, the option of bankruptcy may not be the best choice for you, especially if you have a steady or surplus income. Bankruptcy is an option to be considered only after a thorough examination of your options with a trustee. Instead, you may consider filing a consumer proposal to reduce the amount of time it takes to repair your credit rating.
How is the Amount I Pay Calculated?
Each month, you will be required to pay an amount determined by the BIA to your bankruptcy trustee. You may be required to make “surplus income” payments, which is the amount of your earnings above the amount deemed as necessary to maintain a reasonable standard of living.
What Types of Debt are Included or Excluded?
The types of debt you are released from in your bankruptcy are those which existed at the date of filing. Debts which are not discharged and for which you will be responsible for after the discharge are generally:
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Child and spousal support owed
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Student loans (if you file less than 7 years after being a student)
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A fine or penalty imposed by the court
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Debts arising from fraud, embezzlement or misappropriation
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Debts arising from obtaining property or services through fraud
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Court imposed fines
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Bail bonds or orders
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Damages from wrongful death or sexual assault
Benefits of Filing for Personal Bankruptcy
There are several advantages to filing for bankruptcy, including:
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Legal action from creditors will immediately halt
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Calls from collectors/creditors will stop
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Your wages will not be garnished any longer
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Certain assets are protected (e.g., your home, RSPs); and
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You can resolve your debt problems and have a fresh start without the stress of your existing financial situation.
How Long Does Bankruptcy Last?
If this is your first bankruptcy, you’ll likely be discharged from your debts after nine months. If you’re required to make surplus income payments, however, the process will be extended to 21 months. In either case, information about your bankruptcy will remain on your credit report for six years, following the date of your discharge from bankruptcy.
Multiple Bankruptcies
If you file for a second bankruptcy, the minimum duration is 24 months. In some cases, it can take upward of 36 months to be discharged from your debts. Additionally, a second bankruptcy will remain on your credit report for 14 years, following the date of your discharge from bankruptcy.
Discuss Your Options With A Trusted Licensed Insolvency Trustee in Ottawa Today
The reliable team at D. & A. MacLeod Company Ltd. can help you determine if personal bankruptcy is the right debt relief option for you. Our licensed insolvency trustees have the knowledge and experience to assess your financial situation and provide effective solutions to eliminate your debt. Let us help you on the road to a new beginning™. Contact us today to schedule a free consultation. You’ll find us in Brockville, Cornwall, Kanata, Kingston, Ottawa, Pembroke and Smiths Falls.
