Best Bankruptcy & Debt Lawyers in Toronto

About Bankruptcy & Debt Law in Toronto, Canada

Bankruptcy & Debt law in Toronto, Canada governs the legal processes related to individuals or businesses that are unable to repay their debts. These laws provide mechanisms for debtors to seek relief from their debts and for creditors to recover what they are owed.

Why You May Need a Lawyer

There are several situations where you may require the assistance of a lawyer in matters of Bankruptcy & Debt in Toronto. These can include negotiating with creditors, understanding your rights and obligations under the law, filing for bankruptcy, or dealing with legal actions from creditors.

Local Laws Overview

In Toronto, Canada, the Bankruptcy & Insolvency Act and the Companies' Creditors Arrangement Act are the primary laws governing bankruptcy and debt. These laws outline the procedures for filing for bankruptcy, the rights of debtors and creditors, and the processes for resolving financial difficulties.

Frequently Asked Questions

1. What is the difference between bankruptcy and insolvency?

Insolvency is a financial state where an individual or business is unable to pay their debts as they become due. Bankruptcy is a legal process under which a debtor seeks relief from their debts by declaring bankruptcy and liquidating their assets to repay creditors.

2. Can I file for bankruptcy on my own?

Yes, you can file for bankruptcy on your own without a lawyer. However, it is recommended to seek legal advice to ensure that you understand your rights and obligations under the law.

3. How long does bankruptcy last in Toronto, Canada?

In most cases, bankruptcy in Toronto lasts for nine months for first-time bankrupts. However, this period can be extended depending on the circumstances of the case.

4. Will filing for bankruptcy affect my credit score?

Yes, filing for bankruptcy will have a significant negative impact on your credit score. It will remain on your credit report for several years, affecting your ability to obtain credit in the future.

5. What debts are included in bankruptcy?

Most unsecured debts, such as credit card debt, personal loans, and medical bills, are included in bankruptcy. However, certain types of debts, such as child support, alimony, and student loans, may not be discharged in bankruptcy.

6. Can creditors still contact me after I file for bankruptcy?

Once you file for bankruptcy, an automatic stay is put in place, prohibiting creditors from contacting you or taking legal action to collect debts. However, some exceptions may apply, such as for secured debts.

7. What is a consumer proposal?

A consumer proposal is an alternative to bankruptcy where you make a formal offer to your creditors to repay a percentage of your debts over a specified period. If accepted, the creditors are legally bound to the terms of the proposal.

8. Do I need to attend court if I file for bankruptcy?

In most cases, you will not need to attend court if you file for bankruptcy. However, you may be required to attend a meeting of creditors where you will be questioned about your financial situation.

9. Can I keep my assets in bankruptcy?

Certain assets are exempt from seizure in bankruptcy, such as necessary clothing, household goods, and tools of the trade. However, non-exempt assets may be sold to repay creditors.

10. How can a lawyer help me with Bankruptcy & Debt in Toronto?

A lawyer can provide legal advice and representation throughout the bankruptcy process, help negotiate with creditors, ensure that your rights are protected, and guide you through the complex legal procedures involved in bankruptcy and debt matters.

Additional Resources

If you require legal assistance in Bankruptcy & Debt in Toronto, the Office of the Superintendent of Bankruptcy Canada and the Ontario Ministry of the Attorney General are valuable resources that can provide information and guidance on bankruptcy and debt-related issues.

Next Steps

If you are facing overwhelming debt or considering bankruptcy in Toronto, it is advisable to consult with a qualified bankruptcy and debt lawyer who can assess your situation, provide personalized advice, and help you navigate the legal processes involved. Contact a reputable law firm specializing in Bankruptcy & Debt to schedule a consultation and discuss your options.