subject: Learning The Basics Of Bankruptcy In London Ontario [print this page] If you are considering filing for bankruptcy in London Ontario as an individual or a business, there is some basic information that you should be aware of before you make a decision that will impact your life in such a great manner. Bankruptcy may not be for everyone; when you are having financial difficulties there are several options that you can consider, so you should do some research into each one and then decide which route will be the best for you to take under your specific circumstances. There is a wealth of information online that you can find about bankruptcy, but you can also speak with lawyers and others who deal with the process in order to find out more.
Besides declaring bankruptcy in London Ontario, some of the other options available to you include submitting a consumer proposal or a Division I proposal to creditors. Each of these processes is carried out by someone known as a trustee in bankruptcy. These individuals help you through the paperwork and other issues that may arise as you go through the process you have selected. Each of the above options carries its own responsibilities and method of repayment or discharge from debt.
Bankruptcy is an option that is mainly for those whose burden of debt has become so great that they have no choice but to seek help against creditors who have brought action against them. A trustee in bankruptcy may help prevent the creditor from taking collection actions, and if the debtor fulfills the obligations of the process they are usually relieved of their debts after nine months. Though this process may be appealing to those who are overwhelmed with debt, it comes with many responsibilities, including the knowledge that one's credit will be greatly affected by the outcome. An adviser will be able to look at your specific case and tell you if bankruptcy is a good choice or if you should consider other options first.
Instead of filing for bankruptcy in London Ontario, individuals also have the option of submitting a consumer proposal. This option is only available for those whose debts do not exceed a total of $250,000. Through this process, a trustee in bankruptcy will offer to pay a percentage of the debts owed over time or extend the time for repayment of the debts or both. The debtor will pay the trustee who will then pay the creditor. The debts must be paid off within five years to fulfill the obligations of the consumer proposal process.
A Division I proposal is another option that is available to individuals or businesses as an alternative to filing for bankruptcy in London Ontario. With this method, there is no limit to the amount of debt that can be owed, but there are strict rules and guidelines that must be followed in order to receive the benefits that this process offers. In method it is similar to a consumer proposal but is sometimes known as a commercial proposal.
The debtor, creditor, and trustee in bankruptcy each have important roles to fulfill in the process of bankruptcy. In order to make it work, each party must be willing to follow the rules outlined by the processes and must work together to resolve the debts. Though it can seem like a very complicated process, when you have the help of someone who is knowledgeable about bankruptcy law it can become more manageable. It's important to look at each option available and to know what your rights are so that you can make an informed decision about bankruptcy. It may be the right way for you to figure out how to overcome your debt issues.
