Bankruptcy Archives - Fresh Start Now Bankruptcy & Consumer Proposal Tue, 20 May 2025 16:41:02 +0000 en-CA hourly 1 Does bankruptcy clear debt in Canada? https://freshstartnow.ca/faq-items/does-bankruptcy-clear-debt-in-canada/ https://freshstartnow.ca/faq-items/does-bankruptcy-clear-debt-in-canada/#respond Tue, 20 May 2025 16:41:02 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5129 Bankruptcy eliminates most unsecured debts, but certain debts, such as student loans (less than seven years old), child support, and court fines, are not discharged.

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]]> Bankruptcy eliminates most unsecured debts, but certain debts, such as student loans (less than seven years old), child support, and court fines, are not discharged.

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]]> https://freshstartnow.ca/faq-items/does-bankruptcy-clear-debt-in-canada/feed/ 0 How long can a bank account be frozen in Canada? https://freshstartnow.ca/faq-items/how-long-can-a-bank-account-be-frozen-in-canada/ https://freshstartnow.ca/faq-items/how-long-can-a-bank-account-be-frozen-in-canada/#respond Tue, 20 May 2025 16:40:22 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5127 There is no fixed time limit. A bank account remains frozen until the issue is resolved, such as paying the debt, negotiating a settlement, or obtaining a court order to release it.

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]]> There is no fixed time limit. A bank account remains frozen until the issue is resolved, such as paying the debt, negotiating a settlement, or obtaining a court order to release it.

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]]> https://freshstartnow.ca/faq-items/how-long-can-a-bank-account-be-frozen-in-canada/feed/ 0 What happens when you declare bankruptcy in Ontario? https://freshstartnow.ca/faq-items/what-happens-when-you-declare-bankruptcy-in-ontario/ https://freshstartnow.ca/faq-items/what-happens-when-you-declare-bankruptcy-in-ontario/#respond Tue, 20 May 2025 16:31:08 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5121 Unsecured creditors are immediately stopped from pursuing you for collection of your debts. The non-exempt value of your assets must be realized, your debts are discharged, and you will be required to complete financial counseling. A first bankruptcy affects your credit for seven years after discharge.

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]]> Unsecured creditors are immediately stopped from pursuing you for collection of your debts. The non-exempt value of your assets must be realized, your debts are discharged, and you will be required to complete financial counseling. A first bankruptcy affects your credit for seven years after discharge.

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]]> https://freshstartnow.ca/faq-items/what-happens-when-you-declare-bankruptcy-in-ontario/feed/ 0 Does the government pay for bankruptcies in Canada? https://freshstartnow.ca/faq-items/does-the-government-pay-for-bankruptcies-in-canada/ https://freshstartnow.ca/faq-items/does-the-government-pay-for-bankruptcies-in-canada/#respond Tue, 20 May 2025 15:59:03 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5112 No, individuals filing for bankruptcy must cover administrative costs, which include trustee fees. If you cannot afford the fees, you may be eligible for assistance through the Bankruptcy Assistance Program. Contact the Office of the Superintendent of Bankruptcy for details.

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]]> No, individuals filing for bankruptcy must cover administrative costs, which include trustee fees. If you cannot afford the fees, you may be eligible for assistance through the Bankruptcy Assistance Program. Contact the Office of the Superintendent of Bankruptcy for details.

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]]> https://freshstartnow.ca/faq-items/does-the-government-pay-for-bankruptcies-in-canada/feed/ 0 How long does a bankruptcy last in Ontario? https://freshstartnow.ca/faq-items/how-long-does-a-bankruptcy-last-in-ontario/ https://freshstartnow.ca/faq-items/how-long-does-a-bankruptcy-last-in-ontario/#respond Tue, 20 May 2025 13:43:46 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5106 A first-time bankrupt in Ontario is eligible for an automatic discharge in nine months if their income is below a set threshold.  The automatic discharge is extended to 21 months if they are required to make surplus income payments. Repeat bankruptcies last longer.

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]]> A first-time bankrupt in Ontario is eligible for an automatic discharge in nine months if their income is below a set threshold.  The automatic discharge is extended to 21 months if they are required to make surplus income payments. Repeat bankruptcies last longer.

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]]> https://freshstartnow.ca/faq-items/how-long-does-a-bankruptcy-last-in-ontario/feed/ 0 Can you claim bankruptcy and keep your car? https://freshstartnow.ca/faq-items/can-you-claim-bankruptcy-and-keep-your-car/ https://freshstartnow.ca/faq-items/can-you-claim-bankruptcy-and-keep-your-car/#respond Tue, 13 May 2025 20:42:03 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5093 If the equity in your car is below the provincial exemption limit, you can keep it. If the equity exceeds the limit, you can make arrangements to pay the difference.

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]]> If the equity in your car is below the provincial exemption limit, you can keep it. If the equity exceeds the limit, you can make arrangements to pay the difference.

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]]> https://freshstartnow.ca/faq-items/can-you-claim-bankruptcy-and-keep-your-car/feed/ 0 What happens when you file for bankruptcy in Ontario? https://freshstartnow.ca/faq-items/what-happens-when-you-file-for-bankruptcy-in-ontario/ https://freshstartnow.ca/faq-items/what-happens-when-you-file-for-bankruptcy-in-ontario/#respond Tue, 13 May 2025 20:40:46 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5091 When you file for bankruptcy, your creditors are stayed from pursuing you for collection.  Your assets vest in your trustee to realize for the general benefit of your creditors.  Depending on your income, you may be required to make surplus income payments.   You will be required to follow specific duties, such as attending credit counselling [...]

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]]> When you file for bankruptcy, your creditors are stayed from pursuing you for collection.  Your assets vest in your trustee to realize for the general benefit of your creditors.  Depending on your income, you may be required to make surplus income payments.   You will be required to follow specific duties, such as attending credit counselling sessions and submitting income reports. Bankruptcy remains on your credit report for seven years after discharge for a first bankruptcy.

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]]> https://freshstartnow.ca/faq-items/what-happens-when-you-file-for-bankruptcy-in-ontario/feed/ 0 Can debt collectors garnish your wages in Canada? https://freshstartnow.ca/faq-items/can-debt-collectors-garnish-your-wages-in-canada/ https://freshstartnow.ca/faq-items/can-debt-collectors-garnish-your-wages-in-canada/#respond Tue, 13 May 2025 20:36:27 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5088 Yes, but they must first obtain a Court judgment before they can issue a garnishment order to your employer.

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]]> Yes, but they must first obtain a Court judgment before they can issue a garnishment order to your employer.

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]]> https://freshstartnow.ca/faq-items/can-debt-collectors-garnish-your-wages-in-canada/feed/ 0 How long can a debt be collected in Ontario? https://freshstartnow.ca/faq-items/how-long-can-a-debt-be-collected-in-ontario/ https://freshstartnow.ca/faq-items/how-long-can-a-debt-be-collected-in-ontario/#respond Tue, 13 May 2025 20:34:46 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5086 The statute of limitations for most debts in Ontario is two years from the last payment or written acknowledgment of the debt. After this period, creditors can still attempt to collect, but they cannot sue you in Court to obtain a judgement and enforce payment.

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]]> The statute of limitations for most debts in Ontario is two years from the last payment or written acknowledgment of the debt. After this period, creditors can still attempt to collect, but they cannot sue you in Court to obtain a judgement and enforce payment.

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]]> https://freshstartnow.ca/faq-items/how-long-can-a-debt-be-collected-in-ontario/feed/ 0 How long can the CRA freeze your bank account? https://freshstartnow.ca/faq-items/how-long-can-the-cra-freeze-your-bank-account/ https://freshstartnow.ca/faq-items/how-long-can-the-cra-freeze-your-bank-account/#respond Tue, 13 May 2025 20:33:07 +0000 https://freshstartnow.ca/?post_type=avada_faq&p=5084 The CRA can keep your bank account frozen indefinitely until the tax debt is paid or a suitable payment arrangement is made. The freeze can be lifted once the CRA is satisfied with your repayment plan, or you file an assignment in bankruptcy or a proposal.

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]]> The CRA can keep your bank account frozen indefinitely until the tax debt is paid or a suitable payment arrangement is made. The freeze can be lifted once the CRA is satisfied with your repayment plan, or you file an assignment in bankruptcy or a proposal.

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]]> https://freshstartnow.ca/faq-items/how-long-can-the-cra-freeze-your-bank-account/feed/ 0