Best Restructuring & Insolvency Lawyers in Aurora

About Restructuring & Insolvency Law in Aurora, Canada

Restructuring and insolvency law in Aurora, Ontario, Canada, addresses the legal procedures and frameworks for individuals and businesses facing financial difficulties. This area of law provides mechanisms such as bankruptcy, proposals, receiverships, and corporate restructuring. The main goal is either to help debtors rehabilitate and regain financial stability or to facilitate an orderly winding down and distribution of assets when recovery is not possible. Canadian federal law, as well as provincial statutes and local practices, play important roles in how insolvency matters are managed in Aurora.

Why You May Need a Lawyer

Navigating restructuring and insolvency can be complex and stressful. Here are some common situations where a legal professional can provide valuable assistance:

• If your business is struggling to pay creditors and you are considering formal restructuring or bankruptcy options.
• If you are an individual overwhelmed by personal debt and want to understand options like consumer proposals or bankruptcy.
• If you are a creditor seeking to recover debts from an insolvent individual or company.
• If you need guidance on negotiating with creditors or defending against collection actions.
• If you are a director or officer worried about personal liability in insolvency situations.
• If you need representation in court proceedings related to restructuring, proposals, or bankruptcy filings.
• If you need to understand your rights and obligations under local and federal laws.

Local Laws Overview

In Aurora, as part of Ontario, restructuring and insolvency matters are primarily governed by federal statutes including the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA). Provincial and local courts, such as the Ontario Superior Court of Justice, handle the administration and enforcement of these laws. Key points specific to Aurora and Ontario include:

• Bankruptcies and proposals must be filed through a Licensed Insolvency Trustee (LIT).
• The Ontario Execution Act protects certain personal property from seizure by creditors.
• The Ontario Personal Property Security Act (PPSA) covers rights of secured creditors.
• There are provincial exemptions that can affect what assets are protected in bankruptcy.
• Court proceedings for insolvency are generally conducted at the Newmarket courthouse, which serves the Aurora area.
• Ontario's Consumer Protection Act may provide additional safeguards for consumers during debt settlements.

Frequently Asked Questions

What is the difference between bankruptcy and restructuring?

Bankruptcy is a formal legal process that involves surrendering your assets for distribution to creditors, often resulting in a discharge of remaining debts. Restructuring, often done through proposals or the CCAA for larger companies, seeks to adjust payment arrangements so that debts can be repaid over time while avoiding bankruptcy.

Who can file for bankruptcy or restructuring in Aurora?

Both individuals and businesses residing or carrying on business in Aurora can file for bankruptcy or restructuring if they are insolvent, meaning unable to meet their debt obligations as they come due.

How do I start the bankruptcy process?

You need to contact a Licensed Insolvency Trustee, who will assess your situation, explain your options, and help you with the required paperwork to initiate bankruptcy or a proposal.

Will I lose all my assets if I go bankrupt?

Not necessarily. There are exemptions under federal and Ontario law that protect certain assets such as basic household furnishings, necessary clothing, tools of the trade, and some retirement savings.

How long does bankruptcy last in Aurora?

For a first-time bankrupt with no surplus income, an automatic discharge is possible after nine months. However, the period may be longer if you have surplus income or prior bankruptcies.

Can creditors keep pursuing me during bankruptcy?

Once you file for bankruptcy or a formal proposal, an automatic stay of proceedings usually prevents creditors from continuing collection efforts, wage garnishments, or lawsuits.

Are all debts eliminated by bankruptcy?

No. Certain debts, such as child support, alimony, fines, court-ordered restitution, and student loans less than seven years old, are not discharged by bankruptcy.

What is a consumer proposal?

A consumer proposal is a formal agreement, filed with the help of a Licensed Insolvency Trustee, that allows you to pay all or a portion of your debts over time, usually up to five years. It is an alternative to bankruptcy.

Can a business restructure without going bankrupt?

Yes. Businesses can use restructuring tools such as proposals under the BIA or arrangements under the CCAA to renegotiate terms with creditors and try to continue operations without full liquidation.

How do I find a reputable insolvency lawyer in Aurora?

Start by seeking recommendations from the Law Society of Ontario or the York Region Law Association. Look for lawyers with experience in insolvency matters who are familiar with local court procedures.

Additional Resources

People seeking information or support regarding restructuring and insolvency in Aurora may find the following resources useful:

• Licensed Insolvency Trustees, regulated by the Office of the Superintendent of Bankruptcy Canada
• The Law Society of Ontario's lawyer referral service
• York Region Law Association
• Ontario Ministry of the Attorney General
• Office of the Superintendent of Bankruptcy Canada (OSB)
• Small Business Services - Ontario
• Ontario Consumer Protection Branch
• Ontario Superior Court of Justice (for local courthouse information)
• Community Legal Clinics serving York Region

Next Steps

If you are considering restructuring or facing insolvency, take the following steps:

• Gather information about your assets, debts, and income.
• Contact a Licensed Insolvency Trustee to discuss your options and receive a confidential assessment.
• If you anticipate legal complications or need advice on protecting your personal or business interests, contact a lawyer with experience in restructuring and insolvency law in Aurora.
• Prepare to provide all relevant documentation to your trustee or lawyer so they can best assist you.
• Act promptly, as waiting may limit your options or expose you to more legal actions from creditors.
• Consult the recommended resources for additional support and information throughout the process.

By taking informed, timely steps and seeking professional advice, you can protect your interests and start working towards financial recovery or an orderly resolution of debt issues in Aurora, Canada.