Bankruptcy Counseling

Managing debt is just a part of everyday life for some people, but for many others it can get overwhelming and incredibly stressful. So who do you turn to for advice?

If you are dealing with money problems, you need up-to-date and accurate advice that is relevant under Canadian laws. At CFFC, we are tied up with some of the most experienced Licensed Insolvency Trustees. They are licensed by the Office of the Superintendent of Bankruptcy Canada, and assist people every day in making the right decisions to manage their debt.

If you have questions, you have come to the right place. Whether you are looking for a better way to handle your existing financial obligations, considering a bankruptcy or a consumer proposal, or on your way to rebuilding your life after a bankruptcy, we have the resources to guide you each step of the way.

There are many reasons why people find themselves at the point where they feel bankruptcy is their only option. In some cases, they simply cannot pay their bills and are using what little, if any, credit they have to pay for basic means. Perhaps they’ve lost their job and either didn’t have or have already gone through their savings. Or, unexpected large medical bills could be part of the culprit. But regardless of why someone may be filing for bankruptcy, the end result and goal is always the same: to clear away debt they are unable to pay off otherwise.

What Happens Once You File for Bankruptcy

Once your bankruptcy is filed, there is an immediate "stay of proceedings". This means that unsecured creditors cannot begin or continue lawsuits, wage garnishees, or even contact you to request payment. Within five days of the bankruptcy starting the trustee will send a copy of the bankruptcy paperwork to creditors, so they can file a claim.

The trustee will file outstanding tax returns up to the date of bankruptcy. Any outstanding taxes or penalties owed CRA will be included.

You will have certain obligations that you will have to fulfill including a monthly income statement and attending credit counselling sessions.

Benefits of the Bankruptcy Process

Once your bankruptcy is discharged your debts will be cancelled with some minor exceptions. The bankruptcy will remain on your credit report for a minimum of six years after the date of discharge. In most circumstances, your bankruptcy will be discharged in 9 months.
This means that for most people their debts are cancelled 9 months after filing for bankruptcy and they can start going through the process of rebuilding their credit.
Successfully filing for bankruptcy means that: • Most unsecured debt will be eliminated
• Collections will cease
• Wages will not be garnished any longer
• You will embark on a fresh start, free from the financial burden of debt