Bankruptcy Trustee in Longueuil

Anyone facing serious financial difficulties, such as the inability to repay debts, should contact a trustee in bankruptcy. The licensed bankruptcy trustee in insolvency (LIT)  will then be able to advise them on the options available and how to proceed.

Bankruptcy proceedings can be initiated either by the debtor (voluntary bankruptcy) or by creditors (forced bankruptcy). A forced bankruptcy is declared by creditors when the debtor finds himself unable to meet his obligations.

The trustee’s mission includes administering the bankruptcy or insolvency process in a fair and orderly manner. The trustee represents the interests of the debtor as well as those of the creditors.

In the event of bankruptcy, the licensed insolvency trustee (LIT) assesses whether the sale of your vehicle will generate a substantial profit. In most cases, a car that is still under financing has no significant resale value. Usually, the value of the car is less than the outstanding balance, as vehicles lose value over time.

Under bankruptcy law, if your vehicle is necessary (and not just useful) for your work, it is possible to keep it. However, if your car has a high resale value, and you have access to public transport, your vehicle could be seized. However, if you live far from public transport services, it’s likely that you’ll be able to keep your vehicle. As each case is unique, it’s up to the trustee to decide in these situations.

To begin the bankruptcy process, make an appointment with one of our advisors to assess your financial situation. During this initial, confidential, no-obligation meeting, we’ll examine the best options for you. If bankruptcy is unavoidable, we will file the necessary documents with the Office of the Superintendent of Bankruptcy (OSB). This legal process triggers the protection of the Bankruptcy and Insolvency Act.

Your creditors will be notified, and all interactions with them will take place through our office. You will be required to meet agreed monthly payments and attend two mandatory counselling sessions to receive financial advice.

Once you’ve fulfilled your obligations, you’ll be released from your debts. Your credit file will carry a bankruptcy notation for 6 to 14 years, depending on your bankruptcy history.

Emerging from bankruptcy means complying with the terms of the repayment plan drawn up by the trustee. It may also involve resuming responsible financial management to avoid similar difficulties in the future. Once you are discharged from bankruptcy, most of your debts will be erased.

Bankruptcy can have a variety of effects on individuals and businesses. These include loss of assets, reduction in credit rating, and long-term legal and financial implications.

When an individual declares bankruptcy, this information appears on the credit file, resulting in a drop in credit rating. This can make it difficult to obtain credit or loans in the future.

Depending on your financial situation, the duration of your personal bankruptcy can vary from 9 to 36 months. However, it is important to note that it can be extended if you have already filed for bankruptcy three times or more.

in bankruptcy, both trustees and receivers handle situations where someone can’t pay their debts. But, while both are appointed by the court, they each have a distinct role:

A trustee is a person who oversees the entire bankruptcy process. They work for the benefit of all creditors. No matter if they are secured or unsecured. Their main job is to gather the debtor’s assets, sell them if necessary, and distribute the proceeds to creditors according to a court-approved plan.

A receiver is usually appointed for businesses in financial trouble, often at the request of a secured creditor. Their focus is on preserving and managing the company’s assets with the intention of potentially salvaging the business. They may also sell assets to repay creditors, but their priority is on keeping the company operational. Receiverships can happen alongside bankruptcy or independently.

The cost of bankruptcy is based on several factors, including the complexity of your financial situation and whether it is your first or second bankruptcy. The price and duration of payments depend on these factors. Contact us to learn more about the monthly cost of bankruptcy.

Spousal or child support debts or alimony cannot be included in a bankruptcy. Additionally, debts from fines, such as parking or traffic tickets, cannot be included. Mortgages, auto loans, student loans, and debts incurred through fraud are also not discharged in bankruptcy.

Your bank account is considered an asset in the bankruptcy process. While filing for bankruptcy, the trustee will definitely take a close look at your financial situation. This includes reviewing your bank statements to understand your complete financial picture, including both your assets and liabilities. This helps ensure accuracy and prevents potential fraud. The trustee won’t be tracking every single transaction you make.

The cost of a consumer proposal depends on your financial situation, your assets and liabilities. In a consumer proposal, one monthly payment reunites the fees for the Licensed Insolvency Trustee (LIT), the distribution to your creditors, and your affordable repayment amount. The goal is to find a payment plan that’s affordable for you while offering creditors a better deal than they’d get in a bankruptcy.

In Canada, the Bankruptcy and Insolvency Act (BIA) regulates the fees charged by insolvency trustees. These fees come from the debtor’s assets and not directly out of their pocket. There’s a set fee structure established by the government, but the final amount can vary based on the complexity of the case.

When your bankruptcy reaches its conclusion, and you receive a discharge, you’ll be free and clear of the debt included in the filing. This means you’re no longer legally obligated to repay them. Additionally, any restrictions imposed during the bankruptcy process will be lifted, you can now focus on rebuilding your credit score.

The length of a bankruptcy depends on a few factors. Two of the main factors are:

Excess income: If your income exceeds a certain threshold, you might need to make additional monthly payments during your bankruptcy. This can extend the overall process.

Number of bankruptcies: The process is typically shorter for first-time bankruptcy filers. However, if this is your second or third bankruptcy, the bankruptcy will last longer.

After 10 years have passed from the date you filed for bankruptcy, it will be erased from your credit report and will not be visible to potential lenders and creditors.

Bankruptcy offers some opportunities to keep some of your money. The law protects certain assets from being seized by the trustee in bankruptcy. Also, if your income falls below a certain amount set by the government, you won’t be required to make additional monthly payments on top of the standard bankruptcy process.