Who qualifies for bankruptcy in Canada?
Welcome to the bankruptcy trustee in Toronto debt talk in 60 seconds where we answer the most frequently asked questions on Canadian debt and insolvency topics. Who qualifies for bankruptcy in Canada? Bankruptcy is a scary topic. In Canada everyone's path to bankruptcy is different. In our debt talk series I want to be able to answer the questions we are most often asked about debt.
Who qualifies for bankruptcy in Canada? Any person or company that is insolvent and owes at least one thousand dollars qualifies. What is insolvent? Insolvent is a financial condition - it means that you are unable to pay your debts as they come due and that if you sold off all your assets the proceeds would not be enough to pay off all your debts.
Bankruptcy should be your last resort. As a licensed insolvency trustee we discuss all other options first with everyone who comes to us. What are some of the options and things you should do?
Options to get out of overwhelming debt
First, prepare a family budget of income and expenses. See what expenses you can cut out. Think about a consolidation loan. Take your higher interest rate debt and consolidate it into a lower interest rate loan. Or, go for credit counselling.
If that's not enough then you can look at an insolvency process. Financial restructuring through a consumer proposal or division one proposal or as a very last resort, bankruptcy. My name is Ira Smith president of Ira Smith Trustee & Receiver Inc. a bankruptcy trustee in Toronto. We help individuals, entrepreneurs and their companies overcome their debt problems
So thank you for watching this video. I hope you learned something. Feel free to get in touch with me either about this video or anything else at all. For any questions you have I would love to speak with you. Shoot me a message, give me a phone call.
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