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Filing for Bankruptcy – Turn to Our Trustees for Help

At Salyzyn & Associates Limited, we can help you file for bankruptcy and walk you through the process. We understand that filing for bankruptcy can be extremely stressful. That’s why we do our best to find the right solutions to your financial problems.

What is bankruptcy?

Bankruptcy is a legal process that stops any legal action by creditors. Filing for bankruptcy allows you to be discharged from most, if not all of your debts. This legal process is closely regulated by the Federal Government.

Who can file for bankruptcy?

Individuals who declare bankruptcy must meet the following criteria:

  • Owe at least $1,000
  • Can’t pay bills when they become due
  • Be insolvent

How long will I be in bankruptcy?

The bankruptcy process varies, depending on whether you have household income that is above standards established by the Federal Government. It also depends on if you have been bankrupt before. Below is a list of discharges that could apply to you. Once your bankruptcy is over, your debts are discharged by law and you no longer have to make payments on them. There are some exceptions, but book a consultation with one of our trustees and we can explain your options.

  • 9 month automatic discharge (release of debts) for first time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
  • 21 month automatic discharge (or more at the court’s discretion) for first time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
  • 24 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
  • 36 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
  • Individuals who file for bankruptcy for a third or subsequent time, who have more than $200,000 in personal income tax debts representing 75% or more of their total unsecured liabilities, or whose discharge is opposed for any reason will still have to go through the Courts to be granted a discharge.

Will notice of my bankruptcy be published in the newspaper?

No, your bankruptcy will not be published because for most consumer debt bankruptcies no notice is required by law.

Will my creditors stop calling me?

Yes, creditors will stop calling. Salyzyn & Associates Limited will deal with your creditors, and, by law, actions against you will cease when your bankruptcy is filed. Garnishees, judgements, and other legal actions are also stopped.

What assets can I keep?

A reasonable amount of assets are allowed to be kept. These assets can include personal effects, household furnishings, and one motor vehicle. In most circumstances you are able to keep a vehicle worth up to $6,500 if you need it for work and it is free and clear of any liens.

What if there is a lien on my vehicle?

You may be able to keep your vehicle even if it was pledged to your creditors. In these cases you will have to negotiate directly with your creditor in order to keep the vehicle. You may get to keep it if you require a vehicle for work and it is worth $6,500 or less. Our trustees can explain the provincial laws to you when you attend your free initial consultation.

Will I lose my house if I file for bankruptcy?

You may be able to keep your house if you file for bankruptcy, but this is a complicated matter. Being able to keep your house may depend on various factors like the amount of equity in the home and if the mortgage holder agrees to let you keep it. Every situation is different, and together we can discuss your home when you meet with us.

How will my credit rating be affected?

For a 6 year period from the day you are discharged from bankruptcy, you will have an R9 credit rating at the credit bureau. However, obtaining credit after bankruptcy will be hard, but not impossible. Furthermore, you are required to attend two financial counselling sessions during the bankruptcy which will teach you how to use credit wisely.

What about student loans?

The debt will be discharged if the date of your bankruptcy is more than 7 years after you completed your studies. You also are eligible to apply to the Court to have your student loan debt forgiven if you have left school more than five years ago.

If you need help filing for bankruptcy, call Salyzyn & Associates Limited for a consultation. We have four convenient offices in Dartmouth, Bedford, Kentville, and Enfield (non-resident). Our team serves residents in the Annapolis Valley, Greater Halifax, and Nova Scotia.

Schedule your free debt consultation
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