Can I Declare Bankruptcy Without Any Assets?
Yes, as long as you qualify for bankruptcy in Ontario, you can have a bankruptcy trustee file (declare) bankruptcy on your behalf, even if you have no assets.
In Ontario, only licensed insolvency trustees in bankruptcy, such as David Sklar & Associates, can file and administer bankruptcies.
In bankruptcy, when there are no assets or equity to divide among the unsecured creditors, they are still required to write off all of their outstanding debt upon the successful completion of the bankruptcy.
In Canada, the laws that govern bankruptcy are meant to be fair to everyone involved, the debtor and their unsecured creditors.
If you have assets, the federal and Ontario governments have identified a number of assets that cannot be seized in bankruptcy. Visit “How Do I File For Personal Bankruptcy In Ontario?” for more details.
Surplus Income
An important factor in bankruptcy is the amount of surplus income. Check out ‘Surplus Income in the Bankruptcy Process’ for more details.
Basically, your total family income, less allowable deductions such as medication and child support, is compared to the number of people in your family. Then, based on guidelines set by the Superintendent of Bankruptcy – it is determined whether or not you have surplus income.
Your licensed insolvency trustee will explain this to you in detail.
If it is decided that surplus income exists, then you must pay 50% of your net household income that exceeds the government threshold.
As well, if you have surplus income and this is your first bankruptcy, the length of your bankruptcy will go from 9 months to 21 months.
Release From Unsecured Debts at End of Bankruptcy
At the end of your bankruptcy period, if you have honored all the terms of your bankruptcy, such as filing monthly reports, attending credit counseling sessions, and making your required monthly payments – you will be released from the unsecured debts included in your bankruptcy.
Note – not all unsecured debts can be included in a bankruptcy, things like child support, alimony, court fines, and some student loans cannot be erased by bankruptcy.
Once again, your trustee will explain this to you in detail.
Considering Bankruptcy in Ontario?
If you are struggling financially and looking for relief, call David Sklar & Associates and book your consultation today. We help people who are drowning in debt and need a solution. You have options we can help you pick the right ones and get the debt relief that you’re looking for
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