Best Bankruptcy Lawyers in Pickering

About Bankruptcy Law in Pickering, Canada

Bankruptcy law in Pickering, Ontario, operates under the federal Bankruptcy and Insolvency Act (BIA). Bankruptcy is a legal process designed to provide relief to individuals or businesses unable to pay their debts. By declaring bankruptcy, debtors may be able to eliminate most unsecured debts, stop legal action from creditors, and get a fresh financial start. Local bankruptcy proceedings are managed by Licensed Insolvency Trustees (LITs), and the process involves a court-supervised assessment of assets, liabilities, and potential repayment to creditors. Residents of Pickering can access bankruptcy services locally, but provincial and federal laws jointly govern the process.

Why You May Need a Lawyer

While bankruptcy is intended to be straightforward, there are many situations where obtaining legal advice is important. Common reasons for seeking a lawyer include:

• If you have complex assets, such as property or investments, that need protection.
• If you are facing lawsuits, wage garnishments, or serious collection actions from creditors.
• If you are unsure if bankruptcy is your best option, or if alternatives such as consumer proposals may be more suitable.
• If you have previously filed for bankruptcy or have complicated financial histories.
• If a creditor is challenging your bankruptcy or questioning your asset disclosures.
• If you own a business with significant debts or liabilities.
• If you need help interpreting which debts can be discharged and which cannot (e.g., student loans, child support).

A bankruptcy lawyer can help ensure that your rights are protected, that you understand your responsibilities, and that all paperwork is submitted correctly and on time.

Local Laws Overview

Bankruptcy in Pickering is governed by the Bankruptcy and Insolvency Act (BIA), which applies across Canada, as well as certain provincial statutes and local court procedures. Key aspects to be aware of include:

• Licensed Insolvency Trustees (LITs): Only federally regulated LITs can administer bankruptcies and consumer proposals.
• Exempt Assets: Ontario law protects certain types of assets from seizure in bankruptcy, including some household goods, tools of trade, limited equity in a primary vehicle, and RRSP contributions older than 12 months.
• Discharge of Debts: After bankruptcy, most unsecured debts such as credit cards and personal loans are discharged, but some debts (e.g., child support, court fines) cannot be eliminated.
• Credit Impact: Bankruptcy will impact your credit rating for up to seven years for a first bankruptcy.
• Duties: Bankrupt individuals must attend credit counselling, provide financial information to their trustee, and cooperate throughout the process.
• Surplus Income: If your income exceeds certain government thresholds, you may have to pay a portion of it during bankruptcy.

Frequently Asked Questions

What is bankruptcy and how does it work in Pickering?

Bankruptcy is a legal process for individuals or businesses who cannot pay their debts. In Pickering, a Licensed Insolvency Trustee (LIT) will assess your finances, manage your assets, notify creditors, and distribute any available assets. Most unsecured debts are forgiven upon discharge, typically in 9 to 21 months for first-time bankruptcies.

Who can file for bankruptcy in Pickering, Ontario?

Anyone who lives or does business in Canada, owes at least $1,000 in unsecured debt, and is unable to pay their debts as they become due can file for bankruptcy.

Do I need a lawyer to file for bankruptcy?

A lawyer is not required to file for bankruptcy, as the process is generally managed by a Licensed Insolvency Trustee. However, a lawyer can be helpful for complex cases or if you have legal concerns.

What debts are not discharged by bankruptcy?

Common debts not erased by bankruptcy include child support, alimony, court fines, some student loans (if less than seven years old), and debts from fraud or misrepresentation.

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

Not necessarily. Ontario has asset exemption laws. If you have equity above allowed limits, your trustee may need to sell the asset or arrange for you to pay the difference to keep it.

How does bankruptcy affect my credit rating?

A first bankruptcy remains on your credit report for about seven years after discharge, making it harder to qualify for new credit during that period.

What are the alternatives to bankruptcy?

Alternatives include a consumer proposal, debt consolidation, credit counselling, or negotiating directly with creditors.

How much does bankruptcy cost?

Costs vary depending on your income, assets, and the fees of the Licensed Insolvency Trustee. There are minimum administrative fees set by regulation, and surplus income payments may also apply.

Can my employer or landlord find out if I file bankruptcy?

Generally, your employer is only notified if there is a wage garnishment. Landlords are not automatically notified, but bankruptcy is a matter of public record.

What happens to my tax refunds during bankruptcy?

Tax refunds for the bankruptcy year and any prior years not yet received are assigned to the trustee for the benefit of creditors.

Additional Resources

Here are some helpful resources and organizations for bankruptcy in Pickering:

• Licensed Insolvency Trustees (LITs): Federally regulated professionals who administer bankruptcy and consumer proposals.
• Office of the Superintendent of Bankruptcy Canada (OSB): Oversees bankruptcy and insolvency processes across the country and provides public information.
• Ontario Ministry of the Attorney General: Provides resources and guidance for legal processes in Ontario.
• Legal Aid Ontario: Offers legal assistance to those who qualify financially and need help with bankruptcy or related matters.
• Durham Community Legal Clinic: Provides free legal advice for residents of Pickering and the Durham Region, including bankruptcy and debt problems.
• Credit Counselling Services: Non-profit agencies can sometimes help you explore alternatives to bankruptcy.

Next Steps

If you are considering bankruptcy or have questions about your debt situation in Pickering, follow these steps:

1. Assess Your Finances: Collect details of your debts, income, assets, and expenses.
2. Contact a Licensed Insolvency Trustee: Arrange a free consultation to discuss your financial situation and explore all available options, including bankruptcy, consumer proposals, or credit counselling.
3. Consider Legal Advice: If your situation is complex or you have concerns about asset protection, previous bankruptcies, or legal challenges, consult with a bankruptcy lawyer who practices in Pickering or the Durham Region.
4. Gather Documentation: Prepare recent pay stubs, tax returns, account statements, and any legal correspondence with creditors.
5. Decide on a Path Forward: With professional input, choose the debt relief solution that best fits your circumstances and start the process.
6. Stay Informed: Follow through with required duties during the bankruptcy process, including counselling sessions and all communications with your trustee or legal counsel.

Bankruptcy is a significant step but can provide financial relief and a chance for a new beginning. Make sure to consult qualified professionals in Pickering to guide you through the process.