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What to do when bankruptcy is inevitable

BLT Lapointe - 02-02-2018

Going into bankruptcy is a huge decision for any individual or business. Before you decide to declare bankruptcy, you or your Montreal business should consult with professional debt consultants to do everything you can to avoid it, and the onerous penalties that it involves. There are many options prior to bankruptcy you can consider, such as debt consolidation and creating a consumer proposal.

That being said, if your debt has gotten bad enough, bankruptcy can be a great relief and a chance to start over, financially. Once you’ve declared bankruptcy, you will immediately stop making payments directly to creditors and all legal action that has been taken against you will cease. Provided you enter bankruptcy ready to learn from your mistakes and change your financial habits, it can be exactly what some people need to alter their course.

What should I do if I think I need to declare bankruptcy?

Before you take any concrete steps towards declaring bankruptcy, you should arrange for a meeting with a Licensed Insolvency Trustee in Montreal or Laval. You’re actually required by law to take a meeting with a Licensed Trustee before declaring bankruptcy. Your trustee will consult with you about whether or not bankruptcy is the right option for you. If it is, your trustee will then start the process in motion by filing all the official paperwork for you with the appropriate agencies in Montreal or Laval.

Once the appropriate paperwork has been filed, your trustee will take over dealing with your creditors. After this, you will work with your trustee to sell any assets you have that don’t contribute to your basic welfare and arrange for financial counselling sessions, amongst other things. Your trustee will take care of the difficult part so you can work toward restarting your life debt-free.

What should I do to prepare for my meeting?

Your Licensed Insolvency Trustee will need to get a complete idea of your financial situation, past, present, and future. Any documents that you can provide about your credit will, of course, be helpful. Just as important as the official documents that describe your debt is a willingness to learn and an openness of mind to improving your finances. Being conscious of how this situation came about and having a desire to find new financial strategies to help prevent it from happening again are essential to the bankruptcy process.

If you’re looking for bankruptcy help in Montreal or Laval, contact us at BLT Lapointe & Associates. We’re a personal and commercial Licensed Insolvency Trustee so whether you or your business need bankruptcy proceedings to stay afloat, we’re here to help you through the process.