Best Restructuring & Insolvency Lawyers in Burlington

About Restructuring & Insolvency Law in Burlington, Canada

Restructuring and insolvency law helps individuals and businesses in financial distress understand their legal rights and obligations when they cannot meet their financial commitments. In Burlington, Canada, these laws allow people to address debt issues through legal processes that can include negotiation, restructuring existing financial arrangements or, if necessary, winding down assets to pay creditors. The goal is often to give honest but unfortunate debtors a fresh start while ensuring creditors are treated fairly.

Why You May Need a Lawyer

There are several common situations where individuals or businesses in Burlington may require legal assistance with restructuring or insolvency:

• You are overwhelmed with debt and cannot keep up with payments.
• Your business is struggling financially, and you are exploring options to remain operational.
• You have received a notice about bankruptcy or creditor legal action.
• You need to understand your rights regarding personal or business assets during insolvency.
• You are a creditor seeking to recover debts from a business or person facing insolvency.
• You need help developing a proposal for creditors or negotiating repayment terms.
• You are facing enforcement actions such as wage garnishment, repossession or foreclosure.
• You want to ensure compliance with Canadian insolvency law.

A lawyer with expertise in restructuring and insolvency can help you understand your options, represent you in legal proceedings, prepare required documents, and negotiate with creditors or government agencies.

Local Laws Overview

Burlington follows both federal and provincial laws regarding restructuring and insolvency. The primary legislation comes from the federal Bankruptcy and Insolvency Act (BIA), which sets out procedures for bankruptcy, consumer proposals and creditor arrangements. The Companies' Creditors Arrangement Act (CCAA) applies to larger corporations seeking court-supervised restructuring. Ontario provincial laws may also impact matters such as enforcement of security interests or asset seizures.

Some key local aspects include:

• Bankruptcies, consumer proposals and business proposals are regulated by federally licensed insolvency trustees.
• Bankruptcy filings and creditor meetings are generally held locally, often in Hamilton or through appointed trustees serving Burlington.
• Ontario’s Execution Act and Personal Property Security Act influence how secured creditors enforce debts before or during insolvency proceedings.
• Provincial courts and the Ontario Superior Court of Justice deal with some insolvency and restructuring matters.
• Certain personal or professional debts, such as family or tax-related obligations, may have specific local considerations.

Frequently Asked Questions

What is the difference between bankruptcy and insolvency?

Insolvency is the financial state of being unable to pay debts as they come due. Bankruptcy is a legal process under Canadian law that formally declares a person or business insolvent, resulting in their assets being used to pay creditors.

How do I file for bankruptcy in Burlington?

The process starts by consulting a Licensed Insolvency Trustee, who will assess your situation, explain your options, and help you file the necessary documents with the Office of the Superintendent of Bankruptcy Canada. The process is regulated by federal law but applies locally.

What is a consumer proposal?

A consumer proposal is a legal agreement, facilitated by a Licensed Insolvency Trustee, in which you offer to pay creditors a portion of what you owe over a set period. It is an alternative to bankruptcy for individuals with up to 250 thousand dollars in debt, not including mortgages on a principal residence.

Can my business restructure debts without declaring bankruptcy?

Yes. Businesses can use formal proposals, informal negotiations or court-supervised restructuring under the Companies’ Creditors Arrangement Act if they meet certain requirements. Legal advice is crucial to determine the best path forward.

Will bankruptcy eliminate all my debts?

Most unsecured debts are discharged in bankruptcy, but some, such as child support, alimony, court fines, student loans in certain situations, and debts resulting from fraud, may survive bankruptcy in Canada.

What happens to my home and assets during bankruptcy?

Certain exemptions protect some equity in your home and specified personal assets under Ontario law. However, non-exempt assets may be sold or surrendered to help pay creditors. A lawyer or trustee can explain what is protected and what is at risk.

Can creditors keep contacting me after I start insolvency proceedings?

Once insolvency proceedings commence, a “stay of proceedings” generally prevents most creditors from contacting you or pursuing collections, lawsuits and wage garnishments.

How does insolvency affect my credit rating?

Bankruptcy and consumer proposals are recorded on your credit report and will affect your credit score. Bankruptcy typically remains on your credit report for six to seven years after discharge, but you can begin rebuilding credit during and after the process.

Do I need to appear in court for insolvency proceedings?

Most personal bankruptcies and proposals do not require court appearances. In more complex cases, or if disputes arise, you may need to attend court or meetings with trustees and creditors.

Can I choose which debts to include in bankruptcy or a proposal?

No. All unsecured debts must be disclosed and included. Concealing debt or assets is not permitted and could result in penalties or criminal charges.

Additional Resources

Several organizations and government bodies can provide information and assistance regarding restructuring and insolvency in Burlington:

• Office of the Superintendent of Bankruptcy Canada - federal regulator overseeing bankruptcy and insolvency matters
• Licensed Insolvency Trustees in Burlington and the Greater Toronto Area
• Ontario Ministry of the Attorney General - for information on courts and legal procedures
• Burlington Chamber of Commerce - for business support and referrals
• Community Legal Clinics - offer legal information and, in some cases, assistance with consumer debt issues
• Credit Counselling Canada - for non-profit credit and debt counselling services

Next Steps

If you are facing financial difficulties or are considering restructuring or insolvency in Burlington, consider these steps:

• Gather a list of all debts, assets, income and expenses for your household or business.
• Contact a Licensed Insolvency Trustee to discuss your options, as they are federally regulated professionals who can help with both personal and business matters.
• If your situation is complex or involves legal disputes, consult with a lawyer who specializes in restructuring and insolvency.
• Seek confidential advice before making decisions or transferring assets to ensure you are following the law.
• Utilize local resources and supports, including legal clinics and credit counsellors, especially if cost is a concern.

Taking timely action and obtaining professional advice are critical. Even in stressful situations, understanding your rights and obligations can help you regain control and start rebuilding your financial future.