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 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.
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.
There are many warning signs of an impending personal bankruptcy situation. Some of these signs are tremendous financial and emotional stress resulting from:
Difficulty paying bills
Selling your assets to meet payments to your creditors
Borrowing on your credit card(s) & obtaining new ones
Paying only the minimum amount due
Using one credit source to pay for another
Relying on payday loans
Credit refusal and legal problems
Legal actions and creditors garnishing your pay
Income tax arrears
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.
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.
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:
Child and spousal support owed
Student loans (if you file less than 7 years after being a student)
A fine or penalty imposed by the court
Debts arising from fraud, embezzlement or misappropriation
Debts arising from obtaining property or services through fraud
Court imposed fines
Bail bonds or orders
Damages from wrongful death or sexual assault
There are several advantages to filing for bankruptcy, including:
Legal action from creditors will immediately halt
Calls from collectors/creditors will stop
Your wages will not be garnished any longer
Certain assets are protected (e.g., your home, RSPs); and
You can resolve your debt problems and have a fresh start without the stress of your existing financial situation.
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.
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.
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.