At S. Funtig & Associates Inc. we understand how stressful it becomes when faced with financial difficulties. Our aim is to reduce the stress, help you restore your dignity, and organize your affairs to allow you to obtain and handle credit post-bankruptcy. In Windsor and Chatham, our team of qualified advisors will help you find solutions for your particular financial situation.

To book an appointment for a free and confidential assessment of your financial situation, please contact us by email at [email protected] or by phone at 519.252.8227. We can assist you with any matters concerning bankruptcy at our Windsor and Chatham offices.

What is Bankruptcy?

Bankruptcy is a legal process that provides a fresh start for individuals or businesses who are unable to pay their debts. In Ontario, the Bankruptcy and Insolvency Act (BIA) is the federal legislation that governs bankruptcy proceedings.

How does Bankruptcy work?

Bankruptcy involves assigning a licensed insolvency trustee to manage your assets and debts. The trustee will assess your financial situation and work with you to develop a plan to pay off your debts. If it’s determined that you’re insolvent, meaning that you owe more than you can pay, the trustee will help you file for bankruptcy.

What are the types of Insolvency Procedings?

There are two types of insolveny procedings available to individuals in Ontario: personal bankruptcy and consumer proposal. Personal bankruptcy is a legal process that allows an individual to eliminate most of their debts by settling the equity in their assets and income. Consumer proposal is an alternative to bankruptcy where a debtor makes an offer to their creditors to pay a portion of their debt or make payments over a longer period of time that provides a better realization than bankruptcy.

What are the consequences of Bankruptcy?

Bankruptcy can have significant consequences for your financial future, including:

• Impact on credit rating: A bankruptcy will remain on your credit report for up to seven years, making it difficult to obtain credit or loans.
• Loss of assets: You may lose assets such as your home or car, depending on the type of bankruptcy you file for and the value of your assets.
• Public record: Bankruptcy proceedings are a matter of public record, which means that your financial information will be available to the public.

Who can help with Bankruptcy?

If you’re considering bankruptcy, it’s important to work with a licensed insolvency trustee. The trustee will provide you with information about the bankruptcy process, assess your financial situation, and help you develop a plan to pay off your debts.

At S.Funtig and Associates, we specialize in bankruptcy and can help guide you through the process. Contact us today to learn more about our services.

Steps in the Bankruptcy Process

If you’re considering filing for bankruptcy in Ontario, it’s important to understand the steps involved in the process. Here’s a brief overview of what you can expect:

Step 1: Meet with a Licensed Insolvency Trustee

The first step in the bankruptcy process is to meet with a licensed insolvency trustee (LIT). The LIT will assess your financial situation and determine whether bankruptcy is the right option for you. They will also provide you with information about the bankruptcy process and answer any questions you may have. Below are some necessary documents required for beginning the interview process.

Application Checklist

Consumer-Debtor Application

Step 2: File for Bankruptcy

If you and your LIT decide that bankruptcy is the best option for you, the next step is to file for bankruptcy. Your LIT will help you complete the necessary paperwork and file it with the Office of the Superintendent of Bankruptcy. An example of some of the forms you will need to sign are as follows:

Blank Statement of Affairs

Assignment Example

Step 3: Sending Notice To Creditors

After your initial interview, your LIT will send a notice to your creditors, letting them know that you have filed for bankruptcy. This notice will include information about the bankruptcy process and instructions for creditors to file a claim if they believe they are owed money.

Step 4: Attend Credit Counseling Sessions

As part of the bankruptcy process, you will be required to attend credit counseling sessions with a qualified credit counselor. These sessions will help you develop a budget and financial plan to avoid future financial difficulties.

Counselling Certifiate

Step 5: Make Payments And fill out Monthly Forms

If you file for personal bankruptcy, you will be required to make payments to your trustee based on your income and expenses. These payments will be used to pay off your debts and cover the costs of the bankruptcy proceedings.

During the bankruptcy process, you will be required to complete and submit monthly forms to your LIT. These forms will ask you to provide information about your income, expenses, and any changes to your financial situation. Your LIT will use this information to ensure that your bankruptcy proceeds smoothly and that you are meeting your obligations.

Monthly Income Form

Step 6: Discharge from Bankruptcy

Once you have completed all of your payments and credit counseling sessions, your trustee will submit a request for your discharge from bankruptcy. If your request is approved, you will be discharged from your bankruptcy and your debts will be eliminated, with some exceptions. Examples of exceptions below:

Certificate of Discharge Example

If you are not discharged from bankruptcy in Ontario, Canada, it means that you will continue to be bound by the terms of your bankruptcy. This can include the requirement to make monthly payments to your trustee, provide updates on your financial situation, and restrictions on your ability to obtain credit. It is important to work closely with your trustee and follow the terms of your bankruptcy to ensure that you are successfully discharged as soon as possible. Below are examples of some of the arlternatives if you are not discharged from bankruptcy.

Refused Discharge Example

Conditional Discharge Exmaple

Step 7: Rebuilding Your Credit

After you have been discharged from bankruptcy, it’s important to start rebuilding your credit. You can do this by obtaining a secured credit card, making payments on time, and keeping your credit utilization low.

How We Can Help

At S.Funtig and Associates, we specialize in bankruptcy and can help guide you through each step of the process. Our licensed insolvency trustees have years of experience helping individuals and businesses in Ontario overcome their financial difficulties. Contact us today to learn more about our services.

Frequently Asked Questions:

I’m having financial problems, do I qualify for bankruptcy?

You must owe your creditors at least $1,000 and must be unable to meet your debts when they become due, or the value of your assets is insufficient to pay all your obligations.

Who should I contact about bankruptcy?

You should contact a licensed trustee in bankruptcy. At S. Funtig & Associates  Inc., we have consultants available to answer your questions. Your initial consultation is free and confidential. If you choose to attend for a consultation, you are not obligated to continue with any service.

How much does it cost?

The cost of a bankruptcy depends on a number of factors, including what assets need to be dealt with, or whether you have you been involved in a business. These and other matters will be discussed with you during the free initial consultation. A trustee’s fee is based on the time spent by the trustee’s office. All trustee’s fees and expenses are reviewed by the Superintendent of Bankruptcy’s office. To assist you with payment of the fees and expenses, S. Funtig & Associates Inc. will review your monthly income and work out a manageable payment schedule for you.

Are there other alternatives to bankruptcy?

Certainly. You can: Make an informal proposal by dealing directly with your creditors; Obtain the assistance of your local credit bureau; or Make a consumer proposal under the provisions of the Bankruptcy and Insolvency Act by contacting a licensed trustee.

What debts can I claim in a bankruptcy?

Credit card debts, loans, income tax debt to Canada Customs and Revenue Agency.

What debts survive a bankruptcy?

1. Fines
2. Penalties
3. Restitution orders imposed by the court
4. Support, maintenance or alimony payments
5. Student loan debts
6. Debts obtained by fraud or misrepresentation

Who will be advised of my bankruptcy?

The Superintendent of Bankruptcy, your creditors and notice will be forwarded to your local credit bureau. The trustee will determine how your bankruptcy will be administered. In summary, administration publication in the local newspaper is not required. In an ordinary administration the trustee must publish notice in the local newspaper. Unless a garnishee against your wages is in effect, it is not necessary to advise your employer.

Do I lose everything when I am bankrupt?

No. Certain assets are not seizable. In Ontario, the following assets may be kept by a bankrupt:

Personal property: reasonable amount.
Household goods valued under $14,180.
Motor vehicle valued under $7,117.
Tools of trade valued under $14,405.
Registered Retirement Savings Plans: contributions outside 1 year of bankruptcy.
Certain life insurance policies and pensions.

principal residence: $10,783

tools for farming: $29,100

Do I still pay my creditors while I am bankrupt?

Payments to unsecured and preferred creditors must stop. Payment to secured creditors will be discussed with the trustee before payments are continued.

May I keep my credit cards?

No. You are required to turn over all your credit cards to the trustee.

What happens to my wages when I file bankruptcy?

During the bankruptcy you are required to provide monthly income and expense statements to the trustee regarding the family unit. The trustee will review your monthly statements with guidelines established by the Superintendent of Bankruptcy. Should your income exceed the guidelines, you will be required to pay surplus income to the trustee.

What happens to my income tax returns during bankruptcy?

You are required to provide the trustee with information necessary to file your year prior and pre-bankruptcy returns. The pre-bankruptcy return is for the period of January 1st to the date of bankruptcy. Any refunds are assets of your bankruptcy estate.

The post-bankruptcy return is for the period of the date of bankruptcy to December 31st. This return must be filed with Canada Customs and Revenue Agency no later than April 30th of the following year. If a balance is due, you will be required to pay this amount to Canada Customs and Revenue Agency. If a refund is generated, this refund will be forwarded to the trustee and will likely be an asset of your bankruptcy estate.

How long will I be bankrupt?

If you have not filed bankruptcy before and you have complied with all your duties, as a first time bankrupt you can be discharged from bankruptcy after 9 or 21 months. On a second time bankruptcy you will receive a discharge after 24 or 36 months. A certificate of discharge will be issued by the trustee.