Personal

We will identify and plan the best alternative to fit your goals and needs. We then ensure the solution continues to work well into the future.

Please refer to our RESOURCES section for an Application Form and links to various websites to ensure you have access to all the information you require.

There are two options available to individuals who need to address their personal financial problems – file an assignment into Bankruptcy or file a Proposal.

As all files and scenarios are unique and specific to each individual, the Trustee will be able to assess your situation and provide you with the options that are available to you.

We can help! Please call 416-780-2231 to schedule an appointment for your FREE consultation with one of our restructuring professionals.

Personal Bankruptcy

There are two types of bankruptcies that an individual can file:

Summary Bankruptcy Overview:

Must have debts over $1,000
Estimated realizable value of the assets of the bankrupt cannot exceed $15,000
Must attend two mandatory counselling sessions
No publication of the notice of bankruptcy in the newspaper
A creditors meeting is only held if requested by the Office of the Superintendent of Bankruptcy or by a creditor(s) that hold at least 25% in value of the proven claims
There is an automatic Stay against creditors
Automatic Discharge from Bankruptcy in 9 months unless opposed by a Creditor, Trustee or the Superintendent of Bankruptcy

Ordinary Bankruptcy Overview:

Must have debts over $1,000
Estimated realizable value of the assets of the bankrupt exceeds $15,000
Must attend two mandatory counselling sessions
Notice of the bankruptcy is published in the newspaper
Mandatory meeting of creditors must be held within 21 days of filing the bankruptcy
There is an automatic Stay against creditors
Automatic Discharge from Bankruptcy in 9 months unless opposed by a Creditor, Trustee or the Superintendent of Bankruptcy

Bankruptcy Overview

Bankruptcy is viewed as the last resort and although it erases most of your debts, you may not be able to keep all of your assets. Under the Ontario Execution Act there are specific categories and values for your assets that are not able to be seized by the Trustee (a complete listing is stated under the FAQs).However, if you have equity in your house you will have to pay that amount into your bankruptcy for the benefit of your creditors. Secured debts are not included in the bankruptcy unless you wish to return the asset to the creditor before the bankruptcy and include any shortfall, once the asset has been sold. If you elect to keep the asset, you have to continue making your mortgage, car loans, lease payments, etc.
However there are certain debts that are not dischargeable (erased) in a bankruptcy such as child and/or spousal support, court debts, fines and fees, loans that have been cosigned and/or guaranteed by another party and student loans that are not at least 7 years old from the date you last attended school. (A complete listing is stated under the FAQs)
A bankruptcy cannot be filed by a person that is still considered to be bankrupt (otherwise known as an undischarged bankrupt), however as long as you have been previously discharged you are able to file a bankruptcy a second or possibly third time.
A first time bankruptcy with no issues or complications is typically discharged after 9 months.
An individual that has filed a second bankruptcy with no issues or complications will be discharged after 24 months.
You do not need to attend a court hearing in order to receive your discharge if you are a first or second time bankrupt. However if you are a third time bankrupt or your discharge has been opposed by the Office of the Superintendent of Bankruptcy, the Trustee or a creditor, or you have debt to Canada Revenue Agency of over $200,000 and the debt is 75% of the total proven debt you will have to attend a court hearing.
The Trustee is responsible for filing any previous year’s tax returns that have not been completed as well as a return for the year in which you file your bankruptcy. If you are to receive a refund for any of those tax returns that are filed by the Trustee the refunds will be sent to the Trustee and will be distributed to your creditors. Alternatively if you owe money for the years prior to filing the bankruptcy it will be included in your debts.
Must attend two mandatory counselling sessions to identify and discuss the cause(s) of your financial difficulty and also how to rebuild your credit and move forward.

Personal Proposals

There are two types of proposals that an individual can file:

Consumer Proposal Overview:

Must have debts of at least $1,000 and less than $250,000 excluding mortgage(s) on your principal residence
Must attend two mandatory counselling sessions
No mandatory meeting of creditors unless requested by your creditor(s) voting against the proposal with at least 25% value of the proven claims filed with the Trustee
Creditors have 45 days from the date of filing the proposal to submit their positive or negative vote
In order for the proposal to be accepted by the creditors, a simple majority of the creditors need to vote in favour of the proposal
If the proposal is accepted by the creditors it will be deemed Court approved (do not have to attend in Court) after an additional15 days as long as none of the creditors contest
Proposal cannot last longer than 60 months/5 years
No automatic bankruptcy if the proposal is not accepted by creditors
There is an automatic Stay against creditors

Division 1 Proposal Overview:

Must have debts over $250,000 excluding mortgage(s) on principal residence
Mandatory meeting of creditors must be held within 21 days of filing the proposal
Creditors have until the date of the meeting of creditors to submit their positive or negative vote
In order for the proposal to be accepted by the creditors, two-thirds of the dollar value of the filed claims and the majority of the creditors need to vote in favour of the proposal
Once the proposal has been accepted by the creditors it must also be approved by the Court
Automatic bankruptcy occurs if a Division 1 Proposal is not accepted by your creditors or by the Court

Proposals Overview

A proposal is the most viable option when the individual is able to pay back a portion of their debts or has assets that they wish to keep. By filing a proposal, you are able to keep your assets and file your own tax returns.
The monthly proposal payment will be determined by your Trustee however it will be more than the creditors would receive in a bankruptcy scenario but still affordable for the individual to maintain.
The proposal is sent to all of your creditors and they have a timeframe stated in the notice of the proposal in which to submit their positive or negative vote to the Trustee. Once it has been accepted by the required amount of creditors it is binding on all creditors of the same class.
Regardless of whether or not a creditor submitted a proof of claim and voted for the proposal, it is still legally binding on all creditors. Once you have completed your proposal a Certificate of Full Performance will be issued.
However there are certain debts that are not erased/discharged in a proposal such as child and/or spousal support, court debts, fines and fees, loans that have been cosigned and/or guaranteed by another party and student loans that are not at least 7 years old from the date you last attended school. (These are the same as the debts that are not erased/discharged in a bankruptcy and a complete list is stated under FAQs).
It is important when in a proposal that you continue to make your monthly payments to the Trustee. If you miss any three payments throughout the term of your proposal, the Trustee must automatically annul (cancel) your proposal and your creditors will be able to continue to collect the amount of the debt remaining to them.
If your proposal has been annulled, you are able to apply to court to have it revived/restarted as long as none of your creditors contest.
You will be responsible to file your own tax returns during the duration of the proposal and will therefore be able to keep any refunds

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