Bankruptcy is designed to eliminate unsecured debt. If you have an unsecured debt and your creditor does not already have a lien (or claim) on any of your property then the creditor cannot repossess items once you file bankruptcy. Typical examples include credit card debt, bank loans, and medical bills. A secured debt, on the other hand, is a debt where an asset is held as collateral in order to reduce the lender's risk. The prime example is a mortgage....

Licensed Insolvency Trustees (LIT), like those at MNP Ltd., work with you one-on-one to understand your financial challenges, let you know your options, and help you find a solution. If you declare Bankruptcy or file a Consumer Proposal, the LIT will help you fill in all the required documents and file them with the federal government's Office of the Superintendent of Bankruptcy (OSB). The LIT will also inform your creditors about the Bankruptcy...

When you file for Bankruptcy, you will need to turn over all your credit cards to your Licensed Insolvency Trustee. You will be unable to obtain new credit cards until after your discharge from Bankruptcy. However, you may be able to obtain either a prepaid or a secured credit card for use during your Bankruptcy. Only a secured credit card will help you rebuild your credit rating.

The Bankruptcy and Insolvency Act requires that all Bankruptcies be filed by a Licensed Insolvency Trustee.

Bankruptcy services are not provided for free. If you are filing for personal Bankruptcy but aren’t financially able to afford the cost, there is a Bankruptcy Assistance Program available through the federal government's Office of the Superintendent of Bankruptcy that may help.

Initiating Bankruptcy proceedings may be appropriate if you’ve considered all your other debt-relief options. If you cannot pay your debt as it comes due and the net worth of your assets is less than the total amount of your debt, Bankruptcy may be an option.

These terms do not mean the same thing. Bankruptcy is a formal legal process whereby you assign your non-exempt assets to a Licensed Insolvency Trustee to be relieved of your unsecured debts. Insolvency is a term that means you are unable to pay your debts as they come due, or your total assets are worth less than the amount of your debt. You must be insolvent to file for Bankruptcy but you are not automatically Bankrupt just because you are insolvent....

Bankruptcy is a legal process that provides immediate relief from your unsecured debt burden, the most common example being credit card debt. It is important to note that certain types of debt are not wiped out or addressed by declaring bankruptcy, which means it's not necessarily an all-encompassing solution for your financial challenges.

Filing for Bankruptcy should not affect your job. Some professional bodies may require you to disclose your Bankruptcy. If you’re bonded in your current position, you may want to contact your human resources department to confirm if there will be any impact on your job/duties.

Once you file for Bankruptcy, the Licensed Insolvency Trustee must notify all your creditors. The Canada Revenue Agency, credit reporting agencies and the federal government's Office of the Superintendent of Bankruptcy will also be informed. A Bankruptcy is a matter of public record with the federal government's Office of the Superintendent of Bankruptcy, and it will appear on your credit report. Your employer is not usually notified unless the...