Know All About Bankruptcy Services In Canada

By Author: Bankruptcy Canada
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Bankruptcy services in Canada include the services provided by trustees. A Bankruptcy Trustee is a professional who is licensed to supervise all aspects of the Bankruptcy and Insolvency Act, including bankruptcies and consumer proposals. The trustee can give a debtor advice and information about proposals and bankruptcy processes to make sure both the debtor's rights as well as the creditor's rights are respected.

Why would you need a trustee? Bankruptcy is a complex process. Licensed trustee acts as a consultant and helps you get through this ensuring that it gets done as quickly and efficiently as possible. There are two main jobs remaining, first taking your assets and selling them. The second whatever money they recover, they will distribute it to the creditors.

What is bankruptcy in Canada?? It means that you assign or surrender everything you own to a trustee in exchange for the elimination of your debts. This way, an individual burdened with debts gets a chance to start fresh. This entire process involves all sort of costs. These ...
... include administrative costs, including court fees, mailing costs and other government set fees. Other costs include losing out on any "windfalls". Windfalls are amounts you get by luck might be inheritance or lottery winnings.

There are advantages and disadvantages to bankruptcy. Let's start with the advantages. Firstly, you are protected from collection action, legal action and wage garnishments. This is a powerful vehicle for a debtor as he or she gets a fresh financial start. Next all of your unsecured debts get eliminated. This is a relatively quick process. Now for the disadvantages. Primarily, it is very hard on your credit rating. Next time around lenders might not avail you any credit. This is because your credit history is reset to zero. You are required to surrender some assets to your trustee. On the plus side this can be an inexpensive way of being free of all your debts.

These consultants not only file for bankruptcy, but also act as professional debt consultants. They guide and provide you with information on how you can settle your debts amicably with creditors. They negotiate with your creditors so that you can avoid bankruptcy. If they feel that you might need independent legal advice, you will be referred to an insolvency lawyer. They also advice you on solutions that will cost you nothing and ensure your debt free without all the hassles involved in the process.

Bankruptcy Canada provides you with all essential information about Bankruptcy services in Canada if you're overburdened with debt. Answers to general queries like What is bankruptcy in Canada? can be found at our website.