Taking the Stigma Out of Bankruptcy Through Information From 4 Pillars

One of the most frequent comments our 4 Pillars debt consultants hear from clients is about the stigma or sense of concern about filing for bankruptcy. In many cases, people come to 4 Pillars assuming that bankruptcy is their only option only to find out that there may be several possible solutions to managing their debt.

Across Canada, bankruptcy is a legal process that has been established to provide Canadians with relief when debt becomes an overwhelming factor in their life. One of the first steps our 4 Pillars debt consultants take with each client is to review their financial situation and determine what options are available. If bankruptcy is a possible option, we take the time to explain the process, the advantages, and possible challenges, and to answer all of your questions.

The Process

Debtors who file for bankruptcy in Canada are able to maintain ownership of assets that are exempt. These assets are set forth in the Bankruptcy and Insolvency Act, and Licensed Insolvency Trustee will manage and oversee the process. In this way, the Licensed Insolvency Trustee acts for the creditors and ensure the process is fair for all parties involved and the debtors rights are not abused.

A Licensed Insolvency Trustee is a federally licensed professional, and they are the only professionals in Canada that can manage or administrate a bankruptcy.

There are also legal provisions that vary by province and territory as to exemptions from the bankruptcy proceedings. In general, personal items and possessions are not surrendered as part of the process, and secured debts, such as vehicles or homes, may not be considered a part of the process.

Talking to your debt consultant at 4 Pillars Debt Consultants helps to understand the process and to assess your financial situation to see if this is the right solution. To find out more, contact us at 866-690-3328 for an initial consultation.