Sometimes, there are occurrences in your life that leave you without any other choice but to file for bankruptcy. Like when your company in Ontario falls under disarray and you just cannot keep up with all the loans, bills, and taxes. When this takes place, you have to go through a process to formally declare that you're bankrupt. Below are some tips on filing for bankruptcy in Ontario.
Get a bankruptcy attorney
You will need the services of a lawyer if you want to make sure that you take the right actions. A bankruptcy lawyer can offer you assistance on your present situation and on what you should do to fix it. You can even ask him file for bankruptcy on your behalf. Discuss the cost for both legal service and filing costs.
Decide on a bankruptcy kind
Under Canadian law, you can select from various bankruptcy types such as debt consolidation, consumer proposal, and debt settlement. The Bankruptcy and Insolvency Act (BIA) also summarizes your rights in any debt relief solution you select. There are also provincial laws legislated in Ontario which prescribe certain rules and laws regarding asset liquidation and properties you can still keep even when you have filed for bankruptcy.
File the petition
Have your attorney get a bankruptcy petition from your local Bankruptcy Court clerk. File and sign the petition and attach all required files including your asset, credit, and income information. The court will assign a trustee for you to manage the process.
If you are filing for bankruptcy because you have lost the capability to repay your financial obligations, it may be best to close up shop and sell off your possessions. Otherwise, ask your trustee on how much of your income will be set aside to debt restructuring. Make sure to efficiently adhere to the whole procedure and to show up all meetings with your trustee to keep abreast of all advancements on your case.
Any business declaring bankruptcy in Ontario can be in for a challenging and time consuming process. With the right mindset and patience, you can get through it all and at some point restore your life from the ashes of debt. For more information on declaring bankruptcy, log on to smallbusiness.chron.com/file-small-business-bankruptcy-1945.html
Pointers on Ways to Declare Bankruptcy in Ontario