In other words, if your household income exceeds the level set by the OSB , then you must make additional payments to your LIT during your bankruptcy. Contact an LIT to find out the current limits for your family size. A discharge releases you from the legal obligation to repay the debts you had as of the date you filed for bankruptcy, except for specific types of debts that are excluded by law.
These include alimony and child support payments, student loans if you stopped being a student less than seven years ago , court-ordered fines or penalties, and debts arising from fraud.
The timing of your discharge depends on a number of factors, including whether this is your first bankruptcy, and whether you are required to make surplus income payments. If your surplus income is higher, your bankruptcy will be extended to 21 months and you will be required to make payments from your surplus income.
To ensure that a greater percentage of debts is repaid to creditors, the following standards set out when an automatic discharge will occur. If you do not qualify for an automatic discharge, the LIT will ask the court to hear your application for discharge. The court will then schedule a date for the discharge hearing. The first step is to contact the LIT who handled your bankruptcy. The LIT will inform you of the reasons why you did not receive your discharge.
For example, you may need to fulfill certain conditions. The LIT may agree to process the discharge for a fee. Alternatively, you can ask a lawyer to apply for your discharge. If you cannot afford the LIT or lawyer fee, you may wish to contact legal aid services in your province.
In addition, some provinces offer a do-it-yourself discharge kit. Prior to your discharge hearing, the LIT prepares a report. At the hearing, which you attend, this report is used to inform the court of the circumstances surrounding your bankruptcy.
This report describes your financial situation and analyzes. A person who declares bankruptcy is assigned the lowest possible credit rating credit score. The information in your credit report that affects your credit score is usually removed after a certain period of time.
The amount of time depends on the type of information and where you live. Generally, it will be removed after six or seven years for a first bankruptcy, and after 14 years for subsequent bankruptcies.
Whether you can obtain credit after your discharge from bankruptcy will depend on your ability to convince lenders of your financial maturity and ability to repay the debt. There are no guarantees—no one is required to give you credit. Bankruptcies generally do not affect the rights of secured creditors. If a creditor has a valid security against your property e. You can apply to have your address removed from the Individual Insolvency Register if publishing it will put you at risk of violence.
This will not affect your bankruptcy. Assets that were part of your estate during the bankruptcy period can still be used to pay your debts. Bankruptcy only applies to individuals. Find out what your options are if your limited company cannot pay its creditors.
You can also contact the National Debtline for bankruptcy advice. You can get free advice from a debt adviser to help you decide how to deal with your debts.
The process to become bankrupt is different if you live in Scotland or Northern Ireland. You cannot apply to become bankrupt in England or Wales. You might be able to apply if you live anywhere else - talk to a debt adviser. You must not break the bankruptcy restrictions in England or Wales. These might also apply outside England and Wales - check the laws of the country you live in. Bankruptcies are considered a public record, but that doesn't mean everyone's going to know about it.
For the most part, it's more common for attorneys and creditors to use this system to look up information about your bankruptcy. But anyone can register and check if they want to.
The service charges 10 cents per page to access case information. Another way people might find out about your bankruptcy is if your local newspaper publishes public notices. Finally, employers, landlords and creditors may be able to see on your credit report that you've filed bankruptcy when you apply for a job, an apartment lease, or a loan or credit card. Twenty-nine percent of employers run a credit check on new job applicants, according to a survey by CareerBuilder. As a result, declaring bankruptcy could affect your ability to get a new job, especially if that job is in the financial services industry or with a government entity.
They do this primarily to make sure you're a good fit for the jobs—such as handling money—and that you're not financially stressed, which could increase the likelihood of theft or fraud. If an employer simply runs a routine criminal background check, however, your bankruptcy won't show up.
It's less likely that employers would conduct background checks on current employees. So if you're not planning to switch jobs, you likely don't need to worry much about a bankruptcy affecting your employment. Keep Track of Your Credit During the Process Because declaring bankruptcy can affect your credit history and ability to do certain things in the future, it's important to monitor your credit scores during the process and as you work on recovering from the ordeal.
As you do so, watch how certain actions affect your credit scores and look out for potential errors and negative information that might influence your score negatively. If you do find something that doesn't belong on your credit report, dispute it with the credit reporting agencies. As you keep track of your credit score during and after bankruptcy, you'll learn better how to improve it over time and keep it in a good place going forward. Want to instantly increase your credit score?
Until now, those payments did not positively impact your score. This service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report.
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