I have personally been helping debtors with unmanageable debt levels for over twenty years.  The decision to file an assignment in bankruptcy is very personal.  Many are very hesitant to file bankruptcy due to the perceived negative perception and others are quickly ready to take control of their lives and be free of harassing collection calls.  Technically, to file for bankruptcy, you must:

  • Owe at least $1,000;
  • Be unable to meet payments as they fall due; and
  • Be unable to pay debts in full if all available assets are sold.

The requirements are a pretty low threshold in the amount of debt that must be owed.  To provide some insight, here are some circumstances for a couple of bankruptcies that we have filed:

  • Separated, mid-50s, jointly owned house with significant equity but debt exceeds equity and no current source of income to make payments
  • Single, mid-30s, credit card debt and small personal income tax liability with a part-time income insufficient to pay living expenses and anything to creditors
  • Single mom, late 20s, $25,000 in debt and collecting Employment Insurance
  • Single, late 70s, retired, health issues with $20,000 in credit card debt
  • Married, mid-40s, disability income, $70,000 in debt with some high-interest lenders

Everyone’s situation is different and must be analyzed to determine if bankruptcy is the best solution.  If your wages are being garnished or your bank accounts are frozen – you may be forced to file bankruptcy to obtain the necessary relief.

If you are struggling with debt, contact Taylor Leibow, Fresh Start Now and we will arrange a free initial consultation to review your financial situation in detail and discuss your solutions.  You can then make an informed decision if now is the best time for you to file personal bankruptcy or if another solution is best for you.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)