The first step is to discuss your situation with a licensed Trustee in Bankruptcy. Ask about consumer proposals and bankruptcy
Most Trustees will be happy to meet and make recommendations for your situation.
You cannot file for bankruptcy or make a legal consumer proposal without a Trustee. That is the law.
KNOW THIS: Your trustee is an officer of the Bankruptcy Court. A Bankruptcy Trustee represents your creditors first, even though you are paying for the service. You come second through out the process.
Do I even need to file bankruptcy?
There are several alternatives to bankruptcy which you should consider first.
They include options like, Consumer Proposal, Debt Consolidation, Debt Settlement or a Debt Management Program
Sometimes you can negotiate with your creditors directly to build a better payment plan and avoid bankruptcy.
Can I afford to file bankruptcy?
In Canada, the cost of bankruptcy is at least $1,800. The fee is payable to the trustee for their time. It also includes administration services and the costs associated with filing the appropriate bankruptcy forms with the Court.
Trustee fees are set by the Office of the Superintendent of Bankruptcy (OSB).
There are ways to get reduced costs if you cannot afford the full fee. Ask a trustee for details
Will I be better off financially if I declare bankruptcy?
Yes. After your discharge, you are no longer legally obligated to repay the debts you owed when you filed for bankruptcy.
You will also feel much better and probably sleep better.
How long will it take for me to recover?
Generally it will take about a year to go through the normal bankruptcy process and get discharged. After that, you can re-establish credit, and move on debt free.