Having your debts discharged is essential if you’re facing financial difficulties and want to regain stability. More precisely, it’s the final step after completing a consumer proposal or declaring personal bankruptcy. At Bernier & Associates, our licensed insolvency trustees (LITs) in Gatineau, Ottawa and other cities in Quebec and Ontario are committed to helping you find a clear path forward. Here’s an overview of what you need to know about discharging your debts.
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What does it mean to have your debts discharged?
As mentioned above, discharging your debts is the final step in the consumer proposal or bankruptcy process. Once you complete all the necessary steps and meet your obligations, your licensed insolvency trustee will automatically issue you a certificate stating that your debts have been discharged. This means you’re legally released from all remaining debts, and your creditors can no longer take collection actions against you.
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The time it takes to be discharged from your debts depends on your debt relief option. For example, if you file a consumer proposal, it can take up to five years. If you declare personal bankruptcy for the first time, the waiting period can be between nine and 21 months, depending on your income.
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What does a LIT do?
A licensed insolvency trustee is an unbiased and independent party that assists you throughout the debt relief process. They’ll assess your financial situation and consider your liabilities, assets, income and expenses to determine the best approach. They can help you with the following:
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Consumer proposal. A consumer proposal is a legally binding agreement that allows you to repay a portion of what you owe, typically over five years. It will enable you to keep certain assets while reducing your financial burden.
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Personal bankruptcy. If a consumer proposal isn’t viable, personal bankruptcy may solve your financial problems. Declaring bankruptcy relieves you of most (or all) your debts. However, you may have to surrender a considerable portion of your assets. The duration varies according to your income, but it allows you to start fresh.
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Debt help in Gatineau, Ottawa and beyond
Having your debts discharged is a complex but necessary process if you’re facing financial difficulties. The good news is that you have several options if you need debt help, but make sure you work with a professional for accurate information and expert guidance. At Bernier & Associates, our expertise makes us a go-to firm for debt relief assistance. Make an appointment today with one of our licensed insolvency trustees in Gatineau or Ottawa to improve your financial health.