Fiset et Associés Syndic Inc. offers services to both individuals and businesses and answers all your questions.
Can My Student Loans be Included in My Bankruptcy?
Whether your student loan has been granted for part-time or full-time studies, there must have been a period of seven years or more between the end of studies and the date of bankruptcy to be discharged from your student debt. If less than seven years have elapsed, bankruptcy will not free you from your student debt.
It is very important to know that if you went back to school at any point, you have to start the seven year wait period over again.
Dischargeable Debts (Some Examples)
Non-Dischargeable Debts (Some Examples)
Which Solution: Bankruptcy or Consumer Proposal
You can count on us as Licensed Insolvency Trustees to help you make the right decision. We will evaluate your financial situation and inform you of the advantages, disadvantages and differences between the two options. The evaluation is free and will allow you to make the right decision given your particular circumstances.
Whether you choose to go with a consumer proposal or bankruptcy, the effect will be to stop:
Examples of Seizable Assets
The Insolvency Trustee will examine your assets during an assessment. Here are a few examples of the things to be looked at:
Under the terms of a consumer proposal, you could retain your property.
In the event of a bankruptcy, your assets will be vested in the Trustee who may liquidate them in accordance with the provisions of the Bankruptcy and Insolvency Act. However, it is possible to retain property in exchange for the payment of potential equity on the assets following agreements made between the Trustee and the creditors.
Examples of Unseizable Assets
Will I Lose My House if I Go Bankrupt?
If you have no equity in your home, it will be possible to keep it (your mortgage payments must be up to date because your mortgage lender will take the necessary steps to repossess the residence if you are in default).
Will I Lose My Vehicle if I Go Bankrupt?
If your vehicle is financed, it will be possible to keep it (your payments must be up to date, because otherwise your creditor will take the necessary measures to repossess the vehicle).
What is Surplus Income?
In the Bankruptcy and Insolvency Act, a significant distinction is made between an insolvent low income person and an insolvent middle or high income person.
The purpose of the Bankruptcy and Insolvency Act is to rehabilitate an insolvent person while respecting the rights of creditors to the extent that a person's income would permit increased fulfillment as part of a consumer proposal.
The calculation of excess income is based on a charter issued by the Office of the Superintendent of Bankruptcy. This charter takes into account the particular circumstances of each individual or his family. The calculation can be done at the time of your initial assessment at the first meeting, which is free. Whether there is surplus income or not has an impact on the duration of a bankruptcy and monthly payments in this context.
Your credit rating is evaluated by the credit agencies according to your repayment habits. The main credit agencies in Canada are Equifax and TransUnion.
The best credit rating is R1 and the worst is R9.
It is possible, after a consumer proposal or bankruptcy, to improve your credit rating; we can advise you on how to do it.