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You have debts and you are pretty sure it is time to file for bankruptcy but you are intimidated by the thought. Bankruptcy is a life-changing process that you have never been through before and therefore a little hesitation is completely natural and to be expected. For most people, bankruptcy is not familiar – even though 4,315 people filed personal bankruptcy in Ontario during the second quarter of 2015 – they are simply not sharing their personal bankruptcy stories. Bankruptcy in fact, is still among the relatively taboo topics that most people would never dream of discussing with someone else – but if we don’t see it, hear about it, or talk about it we cannot change how people feel. The stigma mostly pertains to the events that precipitate filing – riddled with misconceptions, many people think bankruptcy is always the result of financial irresponsibility and a lack of self-control – they do not realize that a significant percentage of bankrupt people have suffered devastating misfortune (illness, job loss, a death in the family, business failure) and this is what has led someone to file personal bankruptcy.

Overcoming the stigma of bankruptcy and rising above misconceptions may not be easy, but understanding the bankruptcy process and accepting that you are not alone will help. Here is a breakdown of the process, step-by-step, to help you feel more comfortable with bankruptcy as a solution to your debt problems.

1. First, call a licensed Trustee for a free consultation and talk about your situation. We will ask you for a general overview of your finances (assets, debts and income) and explain how a bankruptcy works (including bankruptcy alternatives such as a consumer proposal).
2. Once you have made your decision, we will collect the necessary paperwork from you (a copy of your identification, credit card statements, a recent paystub are examples of what is required). We will then prepare the bankruptcy documents for you to sign.
3. A date will be set for you to review and sign the documents, after which, your documents will be sent to the government, and delivered to all of the people you owe money to.
4. For a minimum nine month period you will be in the bankruptcy process (this can be longer for some people – your Trustee will advise you if you may fall into this category). During the bankruptcy you will be required to submit a monthly budget, attend two mandatory financial counselling sessions, and you will be responsible for delivering your tax information (T4 slips, deductions etc.) as your current year taxes (and likely any outstanding prior years) will be filed by your Trustee.  You will also be required to make a monthly payment to cover the cost of your bankruptcy.
5. At the end of your bankruptcy term, provided all of the bankruptcy requirements have been met, we will issue a certificate of discharge from the bankruptcy process.  The discharge certificate will notify everyone that you are no longer responsible to repay the debts that were included in your bankruptcy and that it is time to update the credit bureau.

Filing for personal bankruptcy, can be a very liberating experience and at Brief & Associates, many people tell us that they wish they had the courage to file much sooner than they did. Don’t let this be your story, if you need help now or have questions about the banrktupcy process please click on the link at the top of this page to speak with one of our qualified debt consultants and learn how a bankruptcy can effectively reboot your finances and improve your future.