Bankruptcy in Ontario
Flexible debt solutions for starting over.
Let our professional team of licensed insolvency trustees find the perfect solution to your financial challenges.
Bankruptcy: Why choose Krieger & Company
You’re not alone. Nearly 7.5% of Canadians have filed an assignment in bankruptcy during the last 25 years. There’s plenty of reasons why. No matter what brought you into debt, Krieger & Company can help you get out of it. We’re ready to review all of your options via a phone call or visit to one of our offices across Southern Ontario. Call us toll free today: 1.844.508.8088
- Flexible payments that fluctuate based on your income
- Be discharged of your debts in as little as 9 months
- Freeze collection calls
How It Works
A Licensed Insolvency Trustee, like Krieger & Company, conducts a full assessment of your financial situation and helps decide if bankruptcy is the right solution to your financial troubles. When all of your questions are answered, we prepare all of the paperwork for you and file the bankruptcy. Right away, the bills stop coming in, the collection calls and letters stop, the garnishments stop- and you take a deep breath being on the road to being debt free.
You have to report your income to the Trustee for at least 9 months and that information will be used to calculate your payments in the bankruptcy. You also need to attend two one-on-one counselling sessions to help you on the road to financial recovery.
Once done, you receive a certificate of discharge that will release you from your debts.
Frequently Asked Questions About Bankruptcy
What Does It Cost?
A Licensed Insolvency Trustee is paid out of the money you pay into the bankruptcy.
The amount to pay varies based on your income and assets but the payments are spread monthly over the duration of your bankruptcy. If you have minimal assets and income below certain thresholds, filing for bankruptcy could cost as little as $225 per month.
Will I Lose My Assets?
Legally all of your assets ‘vest’ or belong to the Trustee. There are a lot of exceptions to this such as your effects, retirement savings (RRSPs) and pensions, a vehicle, and most insurance policies. If you have a small amount of assets, we will often apply payments that you are already making toward the repurchase of those assets. On the other hand, if you have substantial assets, often a consumer proposal can be a better option
How Long Does Bankruptcy Last?
The length of your bankruptcy can vary. If you do the things you’re required to do and an objection isn’t raised, you are eligible for an automatic discharge from bankruptcy after:
• 9 or 21 months for a first time bankrupt, based on your income.
• 24 or 36 months for a second time bankrupt, based on your income.
• Based on the decision of the Court for a third time bankrupt or certain tax situations.
Do I Qualify?
A bankruptcy can be filed by any individual who either lives in Canada or has debts in Canada and can’t pay them back. There is no limit to the amount that you owe- a bankruptcy is possible even with a couple thousand dollars of debt. Some of these may describe you?
• My income or employment is uncertain or varies.
• I don’t have many or any assets or high income.
• I want to put my debts behind me as quickly as possible.
How Does It Affect My Credit?
A bankruptcy for a first-time bankrupt is noted on a credit report for six years after your discharge from bankruptcy. Most credit shows as an “R9” which means “Bad debt; placed for collection; moved without giving a new address or bankruptcy”. If you are already getting collection calls, your credit report likely already shows your debts with an “R9” rating.
This doesn’t mean that you can not get credit in the future, however indicates to lenders to be cautious. At Krieger & Company, we will work with you to rebuild your credit and minimize the impacts of this R9 rating of your older debt.
What About My Tax Debt & Student Loans?
Government debt like personal income tax, HST from your small business, or liabilities as a director of a business are generally included in your bankruptcy like any other debt. The sooner you can address these debts, the more flexibility you have in working with your creditors.
A student loan where you have been out of school for more than seven years will be included in your bankruptcy. If you haven’t been out of school for more than seven (7) years, a bankruptcy will pause collection activity on your student loan until you have been discharged from bankruptcy.