CREDIT SOLUTION CENTRE

Personal Bankruptcy in Ontario
Bankruptcy, the "fresh start"

When might bankruptcy in Ontario be necessary for you? - As a resident of Ontario, Canada, if you are unable to pay your bills as they come due and you are unable to file a proposal to creditors, it may be necessary to file an assignment in bankruptcy. Since you file bankruptcy in your province of residence, if you are a resident of Ontario, you would file your assignment in bankruptcy in Ontario. People living in other provinces would be filing bankruptcy outside Ontario, in the province of their residence.

If you are unable to pay your bills as they come due and you are unable to file a consumer proposal to creditors, you may be forced to file personal bankruptcy.

The concept behind personal bankruptcy in Ontario is this: you assign or surrender everything you own to a trustee in bankruptcy in exchange for the elimination of your unsecured debts.
Do I really lose everything if I declare personal bankruptcy in Ontario?

Under Ontario law, certain things are exempt from seizure by a trustee in an Ontario bankruptcy. The bankruptcy exemptions in Ontario include:

* $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);
* $5,650 worth of motor vehicles (cars, trucks, etc.);
* $11,300 worth of furnishings;
* $11,300 worth of tools of the trade (equipment that you use to earn a living); and
* Certain types of life insurance.

Technically, in an Ontario bankruptcy everything else that you own is seized by the trustee and sold to repay your creditors
What will happen with my house if I file for Ontario bankruptcy?

Like consumer proposals, personal bankruptcy in Ontario only deals with unsecured creditors. Unless you have accumulated significant equity in your house, bankruptcy will probably not affect it. If you own your home, make certain to discuss the disposition of your house in detail with your trustee before you file for Ontario bankruptcy. For more information, read our page "Will I lose my house in bankruptcy".
How will personal bankruptcy in Ontario affect my car?

If you have clear title to your car (you haven't pledged it as security for a loan) then you will be required to, during the course of your Ontario bankruptcy, either pay the trustee the value of the car from your post-bankruptcy earnings or the bankruptcy trustee will be forced to seize and sell your car. If you have a car (or any other type of vehicle) make certain to discuss the disposition of your car with your trustee before you file for personal bankruptcy in Ontario. For more information on what will happen to my car after filing for bankruptcy, click on the link.
What do I do now?

If you are experiencing money problems and you live in Ontario, please call Credit Solution Centre today or fill in our Assment Form or E-mail us to arrange for a free consultation in regards to Ontario bankruptcy, bankruptcy alternatives, and options that would work best in your specific situation.
Don't put off peace of mind - call for help today