Filing for Bankruptcy in Cornwall Ontario – Three Things You Should know

Firstly: You’re not the only person declaring personal bankruptcy In Cornwall ON

People declaring personal bankruptcy in Cornwall are a reflection of what is happening in the rest of Ontario and Canada as a whole. The total number of bankruptcies and proposals in Canada increased by 4.7% in June 2020 compared to the previous month. Bankruptcies increased by 8.0% and proposals increased by 2.9% as reported by the Office of the Superintendent of Ontario.

These stats will increase as the effects of COVID-19 continue to wreak havoc on Ontarians personal finances and Ontario’s economy.

Secondly: Not finding a debt solution can have serious negative health effects.

Declaring personal bankruptcy may be the best decision you ever made. Of course there are negative consequences that can be quite serious, but there are tremendous advantages too. The stress of being in debt carries negative physical, emotional and relational health consequences.

Thirdly, we have all heard “what doesn’t kill you makes you stronger”. 

Understanding that declaring personal bankruptcy is not the end of the world but rather a new beginning. It’s an opportunity to put your financial house in order and start fresh. Learning to budget and manage money is a life lesson that will benefit you your entire life. Arrange a Free Confidential Consultation

Guide to filing for personal Bankruptcy in Cornwall Ontario

Here is a guide to the typical steps you will go through when you declare personal bankruptcy in Ottawa or for that matter anywhere in Ontario.

First Step: Contact a Cornwall Licensed Insolvency Trustee (LIT) 

Filing for personal bankruptcy is a legal process and must be done through a Licensed Insolvency Trustee. The consultation costs you nothing and is confidential.

Second Step: Determine whether you qualify to file for bankruptcy.

The trustee will go over all your finances to make a determination if you qualify to file for bankruptcy. 

Third Step: Consider other alternatives to bankruptcy.

You may not have to go bankrupt. There are bankruptcy alternatives that you may want to consider. You can submit a consumer proposal, get a debt consolidation loan and have just one manageable payment to make or a lifestyle change that requires less income..The trustee will guide you through these alternatives.

Fourth Step: Start the Bankruptcy process.

Once the bankruptcy process has started your credits will be notified that you have filed and that they need to file their claim for the money you owe them. You will get immediate protection from all your unsecured creditors. No more collection calls, wage garnishments etc.

Fifth Step: The things you are required to do for the Trustee during this period.

1. You need to provide the trustee with your tax information. This includes any years you have not yet filed for.
2. Surrender to the trustee any non-exempt assets.
3. Make the required contribution to your bankruptcy estate including any surplus income payments you may have.
4. Submit monthly proof of income including pay stubs & other income.
5. You must attend two counselling sessions covering budgeting and other financial advice.
6. Complete any other duties requested by the trustee.

Sixth Step:Getting your discharge from bankruptcy.

The overwhelming majority of personal bankruptcies are discharge automatically after nine months. A discharge is important because it means the debtor is no longer bankrupt and is under no obligation to their creditors. 

The countdown to when the credit bureau clears the person’s record of having gone bankrupt can begin the six-year term. Arrange a Free Confidential Consultation

Seventh Step: Rebuilding your credit

You can start rebuilding you credit score immediately after you are discharged from bankruptcy.The simplest and quickest way to re-establish your credit is to obtain a secured credit card.

A secured credit card is a card on which you pay the cards limit up front . An example of this would be you give the credit card company $500. And they give you a card with a credit amount of $500..By doing this there is no risk to the credit card company and can start rebuilding your credit.

Cornwall Credit Counselling Services

Sometimes personal bankruptcy isn’t the way to move forward. Our Cornwall Credit Counselling services are here to help you reduce your debt and help you learn how to handle your money a bit wiser. We give you the tools and encouragements you need to put your finances in order and get your life back on track.

Consumer Proposal Cornwall Ontario 

Asking your creditors to reduce your amount owing and giving you an interest free holiday can be accomplished with a Consumer Proposal.  This step along with credit counselling can be the one two punch needed to get past your money trouble and get you back on your financial feet again!
You will find more detail about your options here. Personal bankruptcy, Consumer Proposals & Personal Bankruptcy,

Find a Licensed Insolvency Trustee Near You

Lazard & Associates besides having offices in Cornwall, providing Licensed Insolvency Trustee & Credit Counselling Services in Ottawa, Brockville, Hawkesbury and Belleville Ontario. Arrange a Free Confidential Consultation

Discussing your options with a Licensed Cornwall Insolvency Trustee

Note: If you find yourself on this page because you Googled Bankruptcy Cornwall Ontario, Cornwall Bankruptcy Trustee or Cornwall credit counsellor, please let us know. Thanks