Who Provides Bankruptcy Services in Brampton?

There is only one group of professional who can provide bankruptcy services in Brampton. They are called Licensed Insolvency Trustees (LIT). No one else can provide these services, not an accountant and not even a lawyer and, most certainly, you cannot file for bankruptcy or a consumer proposal on your own. Only a Licensed Insolvency Trustee is given the authority by the Canadian government to administer  personal and corporate bankruptcies as well as consumer proposals to creditors.

Many other companies offer credit consulting or debt consolidation services, however, only a Licensed Insolvency Trustee can provide all bankruptcy services, whether a bankruptcy or a consumer proposal, in accordance to the Bankruptcy and Insolvency Act. Bankruptcy laws in Canada are governed by the Office of the Superintendent of Bankruptcy (OSB) and LIT’s, who are licensed and regulated by the OSB have the legal obligation to follow the laws and ensure that your rights and your creditors’ rights are maintained throughout the process.

If you are burdened by money problems and need help in dealing with a very heavy debt load, trustees will work with you to help determine what is the best option for you. Because Licensed Insolvency Trustees act in accordance with the Bankruptcy and Insolvency Act while other debt consultants do not, they are  bound by a strict code of conduct to explain all of your debt relief options to you. This means that they will not only discuss bankruptcy but all of your other debt options so that you can make an informed decision.

Residents of Brampton, Ontario have many options to choose from when it comes to getting out of debt. This includes:

• Debt settlement
• Debt consolidation loans
• Credit counselling
• Consumer proposal
• Filing for bankruptcy

When you consult with a Licensed Insolvency Trustee, he will first examine your financial condition and then look at all options to see what would best fit your situation.

How do you know if you qualify for bankruptcy services?

The Licensed Insolvency Trustee will let you go through a solvency test to determine if you are insolvent. In order to be eligible for bankruptcy you need to meet all three of these requirements:

1. You owe your creditors more than $1,000. You simply add up all debt you owe and if it is greater than $1,000 then you meet the first requirement.
2. Your total debts exceed the sale value of your assets. If you sold the things you own would it generate enough money to pay off all your debts? If you don’t have a lot of assets then you basically do not own anything of value to sell and pay off your debts, and so you would easily meet this criteria. If you own a home with lots of equity or a car that’s all paid up, or a vacation property, or savings and even RRSP’s, then these assets will have to be appraised to determine their value and if the sale amount can cover your total debts.
3. You are unable to pay your debts when they are due. Can you meet all your monthly payments? Have you started making missed payments on some of your debts? Are you only able to make minimum payments on your debts and cannot afford to pay more?

When your Licensed Insolvency Trustee finally determines that you don’t have many assets or enough equity in your home, and that you are struggling to make monthly payments on your debts or pay your monthly bills on time, or your creditors have taken legal actions against you, like a wage garnishment or lien on your home, then he can conclude that bankruptcy might be the right solution. At this point, you can safely decide to avail of bankruptcy services in Brampton to help you and your family get a fresh start in the fastest and least expensive way.