When it comes to Kitchener bankruptcy information, here are the top ten things you need to know:
- The leading causes of bankruptcy in Kitchener are job loss resulting in reduced income, marriage separation or divorce, and medical problems leading to reduced income.
- The average person in Kitchener who declares bankruptcy is approximately 40 years old, although many people older and younger than 40 go bankrupt in Kitchener each year.
- Each year in Kitchener and area over 1,500 individuals file personal bankruptcy or file a consumer proposal.
- A consumer proposal is an alternative to bankruptcy where a plan is created so that you make one payment each month to deal with all of your creditors. Since your creditors don’t want you to go bankrupt, it is often possible to make a proposal where you pay less than the full amount owing.
- In Kitchener, to file bankruptcy you must meet with a licensed insolvency trustee (LIT) who will provide you with the information necessary to help you make an informed decision. You cannot declare bankruptcy until you have had a personal meeting with a LIT.
- You will be required to provide your trustee with a list of your creditors (the people you owe money to), a list of your assets, a monthly budget, and other personal information required to complete the bankruptcy paperwork.
- After your meeting in Kitchener with your trustee to sign the bankruptcy papers, your bankruptcy will be electronically filed with the government, so it becomes effective immediately. The bankruptcy information is then sent to all of your creditors by mail or fax.
- During the bankruptcy period you are required to make a payment to your trustee. The payment is determined based on levels set by the government, taking into account your income, family size, and other unusual expenses. If your payments are not made as required, your discharge from bankruptcy may be delayed.
- As part of the process, you will meet with a credit counsellor in Kitchener to discuss the causes of your bankruptcy. They will give you important information to help you re-build your credit and give you the tools necessary to give you a fresh start financially.
- The information about your bankruptcy in Kitchener will remain on your credit report for approximately seven years from the date you file bankruptcy. Once you are discharged from bankruptcy, which can happen as quickly as nine months, you can borrow again, but the bankruptcy information on your credit report generally means that the first time you borrow you may be required to provide a security deposit, or you may be charged a higher rate of interest.
Considering bankruptcy or a consumer proposal in Kitchener? Contact us today for a free consultation.