Personal Bankruptcy and Proposal FAQ
Personal bankruptcy is something you may not know much about until you are forced to consider it for the first time. If handled correctly, it can be a beneficial debt solution. If mishandled or without enough information, it can be extremely confusing.
D. Thode & Associates Inc. wants to help you find debt solutions that last, and we have provided this FAQ page on common personal bankruptcy and proposal issues to help you make educated decisions.
For advice from industry experts, please contact us.
Although personal bankruptcy is part of the public record, typically only parties involved will be notified of your bankruptcy claim. When you work through bankruptcy with D. Thode & Associates Inc., we will do all we can to keep your bankruptcy confidential.
Bankruptcy involves your creditors, your trustee, an official receiver, a bankruptcy court and the Superintendent of Bankruptcy.
Yes. By signing the legal documents to declare bankruptcy, you show that you understand the significance of your situation. Before signing, be sure that you understand all details of your bankruptcy and provide accurate and honest information to your trustee. D. Thode & Associates Inc. will be with you throughout the process to give you the information you need.
How does bankruptcy affect loan co-signers? Entering into bankruptcy does not negate a co-signer’s responsibility for the repayment of a loan. This means that bankruptcy has ramifications for both the signer(s) and co-signer(s).
When you declare bankruptcy, most garnishments and legal actions will stop, but there are certain areas that will not be affected, such as criminal fines. Your specific circumstance determines the cessation or continuation of garnishments, all of which can be explained to you by a D. Thode & Associates Inc. employee.
Existing payments to creditors should stop once bankruptcy has been declared. Your trustee will then handle payments to creditors by determining your expenses and excess income.
Harassment from creditors should cease once you have entered into bankruptcy. All creditors that continue to contact you should be referred to your trustee. You have rights and deserve to have them upheld in a civilized manner.
Credit reporting agencies can obtain information about your bankruptcy since bankruptcies are entered into the public record. This may affect your credit, although the exact impact varies from case to case. For more information about how your personal credit will be affected, contact D. Thode & Associates Inc.
Windfall profits – unexpected profits such as lottery winnings, unexpected inheritance, or demutualization increase – are given up as payment to your creditors during your bankruptcy period.
Yes. When you enter into bankruptcy, you will need to complete two tax return forms. The first is for the period before your bankruptcy began. The second is for the period from your bankruptcy date to the end of the fiscal year. All tax refunds will be administered to your creditors as part of the bankruptcy settlement.
In most cases, employment prospects are not affected. The main exception is if a potential career requires you to be bonded. In some cases, this may be problematic. Your trustee at D. Thode & Associates Inc. can provide you with details pertaining to specific companies you are considering applying to.
First-time bankrupts who have obtained counselling are automatically discharged from bankruptcy 9 months after the filing date. (Note: If a discharge is opposed, this timetable may be extended.)
One alternative to bankruptcy is a creditor proposal. This is a proposal to your creditors where predetermined payments will be made over a set amount of time. Proposals have some similar characteristics to filing for bankruptcy and are most effective with professional assistance. Contact a professional trustee at D. Thode & Associates Inc. to learn more about creditor proposals.
Watch: What to expect if you file for bankruptcy
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