What is Personal Bankruptcy?
Personal Bankruptcy is a legal process that is designed to wipe out credit card debt, income tax debt, and other types of unsecured debts for people who can no longer afford to repay them. If you’re thinking about filing for Personal Bankruptcy, call us or submit our Contact Form for a FREE no obligation consultation to see if you qualify.
How does a Consumer Proposal differ from Personal Bankruptcy?
A Consumer Proposal allows you to legally settle your debts and allows you pay this settlement over an extended period using a court-approved, supervised payment plan that you can afford. Not all creditors need be paid in full and unpaid amounts will be discharged. Schedule a free consultation with Fong and Partners to evaluate your eligibility.
Why do people choose to file a Consumer Proposal over Personal Bankruptcy?
There are several advantages to a Consumer Proposal compared with a bankruptcy:
- Your assets won’t be affected.
- You’ll be able to start rebuilding your credit as soon as your proposal is approved by your creditors. Creditor approval takes takes 45 days from the date you file your proposal.
How can filing for Personal Bankruptcy or a Consumer Proposal help with creditors?
The minute you retain a Licensed Insolvency Trustee to file your Bankruptcy or Proposal, the Trustee will notify all of your creditors of your filing and tell them that they may no longer call you or write you letters. If your creditors continue to harass you after receiving notice of your Bankruptcy or Consumer Proposal, they are subject to sanctions by the bankruptcy court. Start now.
Do I have to file a Bankruptcy or Proposal if I am in debt?
No. If you can pay your bills when they’re due, it’s a good idea to do so. However, if your debts are significantly more than your assets and income, a Bankruptcy or Proposal might be your best option. Call us or fill out the Contact Form for assistance in making this decision.
Can I apply for a new credit card once I have filed a Bankruptcy or Proposal?
You need to surrender your credit card if you file for Bankruptcy.
You can keep your credit card if you file a Proposal, but your credit card company will decide whether you can keep your credit card after you file it. If you have a balance on the card that you are trying to eliminate in the Proposal, that company will likely cancel your card.
However, once your Proposal has been approved by your creditors (which only takes 45 days), you can apply for a secured credit card to start rebuilding your credit.