Best Bankruptcy Lawyers in Aurora

About Bankruptcy Law in Aurora, Canada

Bankruptcy is a legal process in Canada that allows individuals or businesses who are unable to pay their debts to obtain a fresh financial start. In Aurora, Ontario, bankruptcy falls under federal legislation called the Bankruptcy and Insolvency Act (BIA), which is administered by Licensed Insolvency Trustees (LITs). Declaring bankruptcy can stop most legal actions by creditors, help eliminate eligible debts, and provide structured relief under the supervision of the court and government authorities.

Why You May Need a Lawyer

While a Licensed Insolvency Trustee must be involved in filing for bankruptcy, there are several situations where a bankruptcy lawyer in Aurora may be essential:

• If you have complex assets or significant non-exempt property you wish to protect
• If you disagree with a trustee’s or creditor’s actions or decisions
• Bankruptcy litigation, such as disputes regarding debt eligibility or asset ownership
• To explore alternatives to bankruptcy, like proposals or restructuring
• Facing collection actions, lawsuits, or wage garnishments
• If you run a business and need to address both personal and business insolvency issues
• To seek advice on the legal and long-term impacts of bankruptcy on your credit and financial future

Local Laws Overview

Aurora, as part of Ontario, is governed by Canadian federal bankruptcy law, principally the Bankruptcy and Insolvency Act. However, certain specifics—such as exempt property, family law considerations, and bankruptcy court procedures—are impacted by Ontario’s provincial laws. Some Ontario-specific points include:

• Asset Exemptions: Ontario law protects specific assets in bankruptcy, such as a limited value of personal items, tools of your trade, one vehicle up to a certain value, and a portion of home equity.
• Family Law Priority: Outstanding spousal or child support takes priority and is not typically discharged in bankruptcy.
• Consumer Proposals: An alternative to bankruptcy, often negotiated with the help of a trustee and sometimes requiring legal advice, allows partial debt repayment over time.
• Local Court Procedures: Bankruptcy matters may be heard in courts serving the Aurora area, typically the Newmarket courthouse for York Region.

Frequently Asked Questions

What is the difference between bankruptcy and a consumer proposal?

Bankruptcy is a legal process that generally involves surrendering certain assets and ending most unsecured debts. A consumer proposal lets you negotiate a repayment plan with creditors, allowing you to keep assets and pay a portion of your debts over time.

Will I lose my house or car if I file for bankruptcy in Aurora?

In Ontario, you may be able to keep your home if there is little equity (less than the exemption limit) and your mortgage is current. One vehicle up to a specified value is exempt. Each case is unique, so consult a trustee or lawyer for guidance.

Are all debts erased in bankruptcy?

No. Certain debts, like child/spousal support, student loans less than seven years old, court fines, and fraud-related debts, are not discharged by bankruptcy.

How long does bankruptcy last in Ontario?

A first-time bankruptcy typically lasts nine months if you complete all required duties and have no surplus income, but it can be extended for repeated bankruptcies or if you have surplus income.

What are the consequences of filing for bankruptcy?

Consequences include a significant impact on your credit report, loss of some assets, and restrictions during the bankruptcy period. However, bankruptcy also offers a fresh financial start and legal protection from creditors.

Do I need a lawyer, or can I just use a Licensed Insolvency Trustee?

For straightforward cases, a Licensed Insolvency Trustee is sufficient. However, if you face complex issues, disputes, or legal challenges, consulting a bankruptcy lawyer is strongly recommended.

Can creditors keep contacting me after I file for bankruptcy?

Once you file for bankruptcy, most collection actions and legal proceedings must halt immediately. Creditors must direct all communications to your trustee.

What happens to my RRSPs and retirement savings?

In Ontario, RRSP contributions made more than 12 months before bankruptcy are generally exempt. Recent contributions within 12 months may be seized.

Will my employer find out that I filed for bankruptcy?

Employers are not typically notified unless your wages are garnished or you owe money to your employer. Bankruptcy is a matter of public record but is not publicized except in certain cases.

Is it possible to declare bankruptcy jointly with my spouse?

Joint bankruptcy is possible when spouses have combined debts and circumstances. Each situation requires individual assessment by a trustee or a lawyer.

Additional Resources

If you need more information or assistance, the following resources can be helpful:

• Office of the Superintendent of Bankruptcy Canada (OSB): The federal authority overseeing bankruptcy and insolvency processes.
• Licensed Insolvency Trustees in Aurora: Qualified professionals authorized to administer bankruptcies and proposals.
• Ontario Ministry of the Attorney General: Provides information about local courts and legal processes.
• Legal Aid Ontario: May provide support for those who qualify for financial assistance with bankruptcy matters.
• Community Legal Clinics: Some local clinics offer free or low-cost legal advice on debt and bankruptcy.
• Credit Counselling Services: Non-profit services offering debt management advice and alternatives to bankruptcy.

Next Steps

If you are struggling with debt and considering bankruptcy in Aurora, here is how to proceed:

• Gather all your financial documents: income statements, list of debts, and asset information.
• Consult a Licensed Insolvency Trustee for an initial assessment—this is often free and can help you understand your options.
• If your situation is complicated or you feel your rights need protection, seek guidance from a local bankruptcy lawyer.
• Ask questions about all available options, such as debt restructuring, consumer proposals, or debt management plans.
• If you decide to proceed with bankruptcy, follow your trustee and lawyer’s instructions closely to fulfill your obligations and achieve discharge efficiently.
• Take advantage of financial counselling opportunities provided as part of your bankruptcy process to help you rebuild your credit and manage future finances.

Making informed decisions is crucial. Don’t hesitate to seek legal advice specific to your circumstances if you are unsure about any aspect of the bankruptcy process in Aurora, Canada.