What is the main goal of bankruptcy law?
Bankruptcy law is a legal procedure that can be used by debtors to restructure their debts or discharge them. It is applicable to individuals, corporations, and partnerships. A debtor who declares bankruptcy (a "bankrupt") may have some or all of their debts discharged, or the terms of their repayment may be changed. Bankruptcy is not available to an individual in a country where "bankruptcy" is interpreted as a criminal act, rather than a legal procedure (such as in the United Kingdom).
To declare bankruptcy in Canada, an individual can file for either an Individual Voluntary Arrangement (IVA) or for a Consumer Proposal (CP) under the Bankruptcy and Insolvency Act. The process involves filling out paperwork and appearing at a hearing before a judge; if all requirements are met, the judge will approve the proposal and make it legally binding. In addition, it allows debtors with regular income to pay off debts over several months to several years, according to a debt repayment plan approved by the court. In contrast, personal bankruptcy may result in debtors having assets liquidated. Depending on legal jurisdiction, consumer bankruptcies are either filed by debtors themselves or by creditors on behalf of debtors.
In Canada,
Bankruptcy law is complicated, and it has changed quite a lot in the past couple decades. In today's post, we'll walk through some of the basics of this highly-specialized area of the law to help you understand what bankruptcy can do for you and when it could be helpful for you to consult a lawyer who specializes in bankruptcy.
If you need advice about bankruptcy, please call this law firm for a free consultation
Ascent Law LLC
8833 S Redwood Rd Suite C
West Jordan UT 84088
801 676 5505