Understanding the Basics of Bankruptcy In Canada: An Overview By Victoria Debt Consultants

While some people in Victoria may see bankruptcy as a negative, it is a positive and legal step that helps people to discharge their debts through a formalized process. In Canada, bankruptcy is filed through a LIT or Licensed Insolvency Trustee and is not handled by debt consultants.
However, debt consultants may be able to provide possible alternatives to bankruptcy, or they may be very helpful in providing education about the process to help consumers understand the benefits it offers.

Reasons for Bankruptcy

Not all consumers will qualify for bankruptcy in Victoria. In cases where the individual can use alternative methods to settle debt with creditors, avoiding bankruptcy has its advantages.
Once you are approved for the process and file for bankruptcy through a LIT, creditors have to stop wage garnishments, stop attempts to collect, and follow specific protocols. The LIT manages this for the consumer and the creditors through the process.

Bankruptcy can be used to eliminate or discharge most unsecured debts, but not student loans, child support, or alimony payments. It may or may not include secured debts. It does not mean the automatic loss of the home and all assets, and in most cases, the bankruptcy will be automatically discharged in 9 months for a first filing.
Talking to debt consultants at 4 Pillars can provide information on bankruptcy and possible alternatives to bankruptcy based on your personal financial situation. To schedule a meeting, contact our debt consultants at 866-690-3328.