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According to statistics from the Office of the Superintendent of Bankruptcy, a total of 55,619 residents filed for bankruptcy in 2010 (the most recent year for available data) as a result of their inability to pay off their debts.. However, if you are in a similar situation, know that filing for bankruptcy is not the only way to deal with debt; it should be considered only when other options didn't work out. What happens when you file for bankruptcy When you declare personal bankruptcy in Ontario, you're obligated to surrender all of your assets to a trustee. The trustee will then take the responsibility of selling your assets and using the money earned from those sales to pay off your creditors. However, you're not going to be left with nothing since under Ontario law, there are possessions which are exempted from seizure, including life insurance and investments. The biggest consequence of declaring bankruptcy is that it will stay in your credit report for a maximum of seven years. Once you file for bankruptcy, the Office of the Superintendent will have to notify the credit bureaus, and it will then be noted on your credit report. As soon as the financial institutions you owe money to are formally notified of the action you've taken, they are not allowed to harass you for payments anymore. Alternatives to bankruptcy As a filed bankruptcy in Ontario stays on your credit report for seven years, it won't be easy to get your life back on track. So before considering bankruptcy, delve deep into alternatives and consider a consumer proposal. Here, you request your creditors to allow an extension for you to pay off your debts or a percentage of your debts. If you go with this option, be sure to work with an experienced financial group who can formulate a payment plan that's ideal to your situation. Another alternative is to get a debt consolidation loan. This loan is used to repay your debts to all of your creditors at the same time. After your debts are paid off, you'll only be left with one outstanding debt, and that's from the lender that provided you with the debt consolidation loan. Struggling with debt is a problem faced by many Canadians today. However, declaring bankruptcy is not the be-all and end-all of debt solutions. For more information, visit ehow.com/list_6371816_personal-bankruptcy-laws-canada.html.
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bankruptcy in Ontario, Ontario bankruptcy,
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