Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

October 2014 – DISCLOSE ALL YOUR ASSETS IN A BANKRUPTCY OR PROPOSAL TO AVOID CREDITORS OBJECTION

By:Adam Aspilla
October 25, 2014

Bankruptcy and Insolvency laws are designed to basically allow a person who is loaded with debts to start life again without stress from creditors, collection agents or legal proceedings due to unpaid debts.

A person who files personal bankruptcy or consumer proposal must demonstrate that he/she has low income and no sufficient assets to pay his/her debts.

To protect creditors, a Bankruptcy Trustee or a Consumer Proposal Administrator would examine closely the bankruptcy/consumer proposal application to insure that an applicant truthfully discloses his/her true income and assets. When a trustee or an administrator is satisfied as to the truthfulness of the information provided in the application, it would be filed to the proper government agency.

For a bankruptcy, the processing period is from nine-months to twenty-one months for a first-time bankrupt, depending on the income of the bankrupt person, while on a consumer proposal it would be up to a maximum of sixty months depending on the amount of debt of the person who files a consumer proposal.

During the processing period, creditors have the right to object to the discharge from bankruptcy of the bankrupt person or to the issuance of the Certificate of Completion of Payment in a consumer proposal, should they (creditors) could find out that the applicant misrepresented his/her income or asset or both which the trustee/administrator did not able to discover.

A good example: an applicant for bankruptcy did not declare one of his cars worth $10,000. As a consequence, a creditor objected to his discharge and now it is the bankruptcy court for the judge to resolve the issue. This would take months if not a year or so for a judge to render judgment. Thus, the discharge from bankruptcy is unnecessarily delayed. Not only that, the judge may require the bankrupt person to pay the creditor who objected, the amount representing the value of the car, and until the amount is paid in full the bankrupt person would get only a partial discharge.

To avoid unnecessary delay of your discharge or the issuance of Certificate of Completion of Payment, honestly disclose all your assets and income.

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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