Do you have questions about filing for personal bankruptcy? Let us help.

What is bankruptcy?

Bankruptcy is a legal process, regulated by the Federal Government that stops any legal action by creditors and allows a person to be discharged from most, if not all, of their debts.

Who can file for bankruptcy?

In order to declare bankruptcy an individual must:
• owe at least $1000
• be unable to pay their bills as they generally become due
• be insolvent

How long will I be in bankruptcy?

The process of filing for bankruptcy varies, depending on whether you have household income that is above standards established by the federal government and whether you have been bankrupt before.  See the list below to see what discharge would apply to you.  When the bankruptcy is over, your debts are discharged by law (you no longer have to pay back your debts). There are some exceptions to this debt solution, and we will explain these to you when we meet.

• 9 month automatic discharge (release of debts) for first time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
• 21 month automatic discharge (or more at the court’s discretion) for first time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
• 24 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
• 36 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
• Individuals who file for bankruptcy for a third or subsequent time, who have more than $200,000 in personal income tax debts representing 75% or more of their total unsecured liabilities or whose discharge is opposed for any reason will still have to go through the Courts to be granted a discharge.

Will notice of my bankruptcy be published in the newspaper?

No. For most consumer debt bankruptcies, no notice is required by law to be published.

Will my creditors stop calling me?

Yes. Our office will deal with your creditors. By law, actions against you cease when bankruptcy is filed. This includes garnishees, judgments and other legal actions.

What assets can I keep?

You are allowed to keep a reasonable amount of personal effects, household furnishings, and one motor vehicle worth $3,000 or less, if there are no liens on the vehicle.

What if there is a lien on my vehicle?

You may be able to keep assets that you have pledged to creditors, such as a car. However, in these cases you will have to negotiate with the creditor directly. In some cases you may be able to keep a car even if you have pledged it as collateral if you require the car for work and the car is worth $6500 or less. We will explain the provincial laws to you when you attend the free consultation.

Will I lose my house if I file for bankruptcy?

You may be able to keep your house if you file for bankruptcy. This is a complicated area and depends on a number of things, including the amount of equity in the home and if the mortgage holder would be agreeable to letting you keep it. Each situation is different and your home will be discussed when you meet with us at the consultation.

How will my credit rating be affected?

You will have an R9 credit rating at the credit bureau for a period of 6 years from the day you are discharged from (or, complete) bankruptcy. While obtaining credit after a bankruptcy will be difficult, it will not be impossible. You are required to attend two financial counseling sessions during the bankruptcy which will teach you to use credit wisely in the future.

What about student loans?

If the date of bankruptcy is more than seven years after you completed your studies, the debt will be discharged with the bankruptcy. If you left school more than five years ago, you are eligible to apply to the Court to have your student loan debt forgiven.

With offices in Dartmouth, Bedford and Kentville, we serve clients throughout Greater Halifax, the Annapolis Valley and Nova Scotia. Your debt solution is only a phone call away.

Free Recorded Debt Information: 865-5497.