Bankruptcy in Hamilton
The decision to file personal bankruptcy for Hamilton residents is a difficult one, but if you have more debt than you can handle, bankruptcy may be your best option.
The advantage of going bankrupt is that your creditors (the people you owe money to) are no longer able to phone you, take you to court, or garnishee your wages. You get a fresh start. (Some debts, like child support, do not go away in a bankruptcy).
In Hamilton, the typical basic cost of a bankruptcy is $160 per month for every month you are bankrupt. The minimum bankruptcy period is nine months, but it will be longer if you have been bankrupt before, or if you earn high income. Each month that you are bankrupt you are required to pay to the trustee, in addition to the basic cost, a percentage of your income over and above the minimum the government allows you to keep. Your trustee will explain this surplus income calculation when you meet to discuss your situation.
While bankrupt you lose your tax refunds and GST credits, but you will still receive your Child Tax Credits if you are eligible for them. You will also lose RRSPs that are not locked in, and you may lose your house or car if they have significant value. Again, your trustee will explain this process to you in detail.
The bankruptcy remains on your credit report for approximately seven years, but if you start saving money most residents of Hamilton who go bankrupt are able to begin re-establishing their credit as soon as they are discharged (at the end of nine months).
For further information, call the Hoyes Michalos Hamilton bankruptcy office at 310-PLAN, or E-mail us to to set up an appointment to discuss your options.
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