Bankruptcy 8 essential questions

 

Bankruptcy is a legal procedure through which a person or other entity who is unable to repay debts to creditors can seek relief from some or all of their debts. It is a situation where a company no longer has enough funds to meet its deadline and debt. It can no longer use its available assets to pay off its current liabilities. In this case, the legal representative goes through a procedure called "bankruptcy" in the Commercial Court. From the occurrence of the payment suspension, he has up to 45 days to complete this procedure, involving companies and sole proprietorships, self-employed companies, and civil partnerships. The judge then decides to initiate a class action procedure, depending on the severity of the suspension of payments, safeguard procedures, restructuring procedures, or liquidation procedures that led to the company's entire bankruptcy.

 The concept of corporate bankruptcy is related to the concept of assets and liabilities. The billing software debitor can record your expenditures and purchases, which are all corporate assets. The following are the most frequently asked questions and answers by credit counseling in Brampton with bankrupts:

 

What is the minimum debt requirement to declare bankruptcy?

According to the law, you must have more than a certain amount in debt to file for bankruptcy. On the other hand, if you owe less money, this is not recommended. Also, you must be bankrupt, that is, you cannot pay on the due date. The debt consultation can help you understand whether declaring bankruptcy is suitable for you.

 

Can I include my taxable debt in bankruptcy?

Yes, personal tax debts and self-employed workers' GST-QST and DAS can be included in bankruptcy. In this scenario, debt consultation in Vaughan can help.

 

Can I choose the debts that will go into my bankruptcy?

No, you are obliged to declare all debts, which must be part of the bankruptcy. The loan consolidation process can help to consolidate all financial debts.

 

Can my student loan go bankrupt?

To exempt student loans by declaring bankruptcy, it must be more than 7 years since you went to school in an institution recognized by the Ministry of Education. If it is less than 7 years old, you will be discharged from other debts, but not from the student loan. The end of your studies is the last date for your school recognized by the Ministry of Education, not the graduation date. 

 If I go bankrupt, can I keep my car?

Most people who file for bankruptcy and lease or purchase cars through installment sales contracts can keep their cars as long as their budget does not allow them, as long as they continue to pay monthly, not having debt loan in Vaughan, and escort the car following the law. The procedure for paying for a car in full has been changed, a fully paid car may not be seized under certain conditions. If the creditor approves or one has loan consolidation credit cards in Vaughan, there may be a sum of money due to the trustee to "buy back" your vehicle and therefore keep it.

 How will bankruptcy affect my credit rating?

The first bankruptcy will leave your file at an R9 rating (the worst rating, ranging from R1 for very good payers to R9 bad payers) for up to 6 years plus your bankruptcy time, or about 7 years. This does not mean that you will no longer get credit or debt credit cards in Vaughan, but it will be harder to get credit. Please note that any bad debts or accumulated overdue payments can also lead to an R9 rating without bankruptcy.

 If I file for bankruptcy, can I keep my credit card?

No, according to the law and credit counseling, you must give all credit cards to the trustee, which means a new start without debt.

 Will bankruptcy free me from all debts?

Bankruptcy can relieve you of all debts somehow like a debt loan, with a few exceptions. These exceptions include fines (air tickets), alimony, criminal activities, and criminal sentences, overpayment of social assistance or unemployment due to false declarations, fraud, student loans under 7 years old, to name a few.

 Source : https://bit.ly/3mXb3JD

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