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Restructuring and insolvency law in Brandon, Manitoba, deals with the legal processes that help individuals and businesses manage financial difficulties when they cannot pay their debts. The primary goal is to either restructure debts so that a person or company can continue operating or, if that's not possible, to ensure a fair process for liquidation and the distribution of assets to creditors. Brandon residents and businesses follow the federal insolvency laws of Canada, with support from provincial regulations and local procedures.
Although it is possible to go through certain insolvency processes without a lawyer, the laws surrounding restructuring and insolvency can be complex and stressful to navigate alone. A lawyer can help you:
Hiring a lawyer can ensure you make informed decisions and feel supported during what is often a challenging time.
Restructuring and insolvency matters in Brandon are governed mainly by federal statutes such as the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA). In some cases, provincial laws-such as those covering secured transactions or debt collection-also apply.
Key local considerations include:
Insolvency is a financial state where an individual or entity cannot meet their debt obligations as they become due. Bankruptcy is a formal legal process that resolves insolvency, usually involving asset liquidation and debt discharge.
A Licensed Insolvency Trustee (LIT) is a federally regulated professional authorized to administer bankruptcies, consumer proposals, and other insolvency processes. LITs act as intermediaries between debtors, creditors, and the courts.
Not necessarily. Manitoba law allows for certain exemptions, such as basic personal belongings, some household furniture, a vehicle up to a set value, tools used for work, and registered retirement plans (excluding recent contributions).
It depends on your home equity and whether you can maintain mortgage payments. Certain exemptions may apply. Discuss your specific circumstances with a lawyer or LIT.
Businesses may use formal legal processes like a Division I Proposal under the BIA or apply for creditor protection under the CCAA to reorganize operations and debts, subject to creditor and court approval.
Certain debts survive bankruptcy, including court-ordered fines, alimony or child support, most student loans if less than seven years old, and debts arising from fraud.
For a first-time bankruptcy, the record typically remains for six to seven years after your discharge. For repeat bankruptcies, it can remain much longer.
A consumer proposal allows you to offer creditors a plan to repay a portion of your debts over a period of up to five years. If most creditors accept and the court approves, you pay according to the plan, avoiding bankruptcy.
Once bankruptcy is filed or a consumer proposal is accepted, wage garnishments usually stop, except for certain obligations like child support or spousal support.
Yes-alternatives include consumer proposals, informal debt settlements, credit counseling, and refinancing. Your lawyer or LIT can help determine the best option for your situation.
Here are some helpful organizations and governmental bodies for those dealing with restructuring and insolvency in Brandon:
If you are facing financial difficulty or considering restructuring or insolvency, it is important to act quickly. Here is how you can proceed:
Remember, the earlier you seek advice, the more options you are likely to have. Professional help can guide you toward financial recovery and peace of mind.
