Information on the Bankruptcy Process

The purpose of the Bankruptcy and Insolvency Act is to allow an honest but unfortunate debtor, a fresh financial start.  There is a lot of fear surrounding the word bankruptcy and what it means to you and your family.  Bankruptcy is only one option available under the Bankruptcy and Insolvency Act, but sometimes it is the most practical solution to deal with your debt load.  The professionals at D. Thode & Associates Inc. can go through these options with you to determine the best option for you given your own set of circumstances.

Benefits of Bankruptcy

Here’s how many of our clients have benefited after filing for personal bankruptcy:

  • The stay of proceedings granted on filing bankruptcy will protect you from further collection action by your creditors.  Once notified of the filing, the creditors cannot ask for payment, continue legal actions or garnish wages.  You will no longer carry that stress, you can start fresh.
  • You will not longer need to juggle payments to different creditors, you’ll only have one payment during the bankruptcy process.
  • You can be discharged from bankruptcy in as little as 9 months. 
  • Part of the bankruptcy process is to provide you with financial counselling.  The counselling will give you tools to get back on your feet financially and to have a more successful financial future.

Responsibilities of Bankruptcy 

Personal bankruptcy also comes with responsibilities, so you should keep these in mind before filing:

  • Although your credit score will drop when you file bankruptcy, you can rebuilt your credit rating after discharge.  Our staff will explain how to rebuild your credit rating during your counselling sessions.
  • During the bankruptcy you will have to record your income and expenses and pay surplus income if applicable.  Although you’ll not have access to credit during the bankruptcy, the counselling sessions will help you set a budget so that you can live within your means during the bankruptcy. 

Watch: Discussing your options with a Licensed Insolvency Trustee

Book a Free Consultation

We want to help you to get out of debt. Don’t hesitate to contact us if you would like to learn more about bankruptcy alternatives like debt consolidation in Kelowna, Kamloops or Penticton. Contact us today for more information.