Krieger & Company


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Bankruptcy Overview

Bankruptcy help from Krieger & Company

You’re not alone. Nearly 7.5% of Canadians have filed an assignment in bankruptcy during the last 25 years. There are plenty of reasons why. No matter what brought you into debt, Krieger & Company can help you get out of it. We’re ready to review all of your options via a phone call or visit to one of our offices across Southern Ontario. Call us toll-free today at 1 (844) 508-8088.You can:
  • Be discharged from your debts in as little as 9 months
  • Make flexible payments that fluctuate based on your income
  • Freeze collection calls and garnishments

How does bankruptcy work

A licensed insolvency trustee like Krieger & Company conducts a full assessment of your financial situation and helps you decide if bankruptcy is the right solution to address your financial challenges. Once all of your questions are answered, we will prepare and review all of the paperwork with you. Right away, your bills stop coming in, collection calls and letters stop, and any garnishments come to an end- and you take a deep breath and are on the road to being debt free.

What to do while bankrupt

While you have a chance to catch your breath, there is still more to do during your bankruptcy. You’ll need to attend two one-on-one counselling sessions to help you on the road to financial recovery. You’ll also need to let us know your income during the time of your bankruptcy, which is used to calculate possible additional payments as well as for us to prepare your outstanding tax returns.

The discharge process

At the conclusion of your bankruptcy, you must obtain your discharge from bankruptcy. Most first-time bankruptcy filers receive an automatic discharge from bankruptcy at the end of 9 or 21 months, provided that they’ve performed all of their duties. Krieger & Company issues a certificate of discharge that will release you from your debts.

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    Frequently asked questions about bankruptcy

    What does bankruptcy cost?

    A Licensed Insolvency Trustee is paid out of the money you pay into the bankruptcy.The amount to pay varies based on your income and assets but the payments are spread monthly over the duration of your bankruptcy. If you have minimal assets and income below certain thresholds, filing for bankruptcy could cost as little as $225 per month.

    Will I lose my assets in a bankruptcy?

    Legally all of your assets ‘vest’ or belong to the Trustee. There are a lot of exceptions to this such as your household effects, retirement savings (RRSPs) and pensions, a vehicle, and most insurance policies. If you have a small amount of assets, we will often apply payments that you are already making toward the repurchase of those assets. On the other hand, if you have substantial assets, often a consumer proposal is a better option.

    How long does a bankruptcy take?

    The length of your bankruptcy can vary. If you do the things you’re required to do and an objection isn’t raised, you are eligible for an automatic discharge from bankruptcy after:
    • 9 or 21 months for a first time bankrupt, based on your income.
    • 24 or 36 months for a second time bankrupt, based on your income.
    • Based on the decision of the Court for a third time bankrupt or certain tax situations.

    Do I qualify for bankruptcy?

    A bankruptcy can be filed by any individual who either lives in Canada or has debts in Canada and can’t pay them back. There is no limit to the amount that you owe- a bankruptcy is possible even with a couple thousand dollars of debt. Some of these may describe you?
    • My income or employment is uncertain or varies.
    • I don’t have many or any assets or high income.
    • I want to put my debts behind me as quickly as possible.

    What does bankruptcy affect my credit?

    A bankruptcy for a first-time bankrupt is noted on a credit report for six years after your discharge from bankruptcy. Most credit shows as an R9 which means “Bad debt; placed for collection; moved without giving a new address or bankruptcy”. If you are already getting collection calls, your credit report likely already shows your debts with an R9 rating.This doesn’t mean that you can not get credit in the future, however indicates to lenders to be cautious. At Krieger & Company, we will work with you to rebuild your credit and minimize the impacts of this R9 rating of your older debt.

    What happens to my tax debt and student loans in a bankruptcy?

    Government debt like personal income tax, HST from your small business, or liabilities as a director of a business are generally included in your bankruptcy like any other debt. The sooner you can address these debts, the more flexibility you have in working with your creditors.A student loan where you have been out of school for more than seven years will be included in your bankruptcy. If you haven’t been out of school for more than seven (7) years, a bankruptcy will pause collection activity on your student loan until you have been discharged from bankruptcy.

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