Personal Bankruptcy Kitchener

There are a number of things you need to know about personal bankruptcy in Kitchener.

Personal bankruptcy is a legal process, governed by federal law, that allows you to discharge most of your debts. While filing personal bankruptcy in Kitchener will get rid of most of your debts, it will also leave a mark on your credit report for approximately seven years, so you should research the personal bankruptcy process first to make sure it is the correct option for you and your family.

If you file for personal bankruptcy in Kitchener you are allowed to keep certain assets. These rules are governed by Ontario law, so if you live in a another province the rules will be different.

If you file personal bankruptcy in Kitchener you are allowed to keep one motor vehicle with no liens or loans against it worth up to $5,650. If the vehicle is worth more than that amount, you would be required to pay the trustee the amount over $5,650.

You are also allowed to keep $5,650 worth of clothing and accessories like jewellery, and $11,300 worth of normal household furniture and belongings. The amounts are based on “garage sale” values, so most people considering filing personal bankruptcy in Kitchener would not have assets exceeding these amounts.

If you file for personal bankruptcy in Kitchener you will be required to make a payment each month to your bankruptcy trustee. The payment is based on your monthly income, the size of your family, and whether or not you pay child support or have unusual medical expenses. Your personal bankruptcy trustee in Kitchener will explain this calculation in more detail.

The minimum personal bankruptcy period in Kitchener is nine months. In addition to making a payment each month as discussed above, you will also be required to submit a monthly budget each month to your trustee, with copies of your paystubs, and you will be required to attend two credit counselling sessions.

If you have income significantly higher than the government determined average, it is possible that your bankruptcy will last for more than nine months. Again, your personal bankruptcy trustee in Kitchener will explain this in more detail.

At the end of your personal bankruptcy your debts are discharged, meaning they are eliminated. Certain debts, such as child support payments and court fines and certain student loans are not discharged in a personal bankruptcy in Kitchener.

For information on how to decide if bankruptcy is the correct option for you, read our article on Making the Decision to File Bankruptcy in Kitchener Ontario