Personal Bankruptcy - Overview
Bankruptcy is a legal process which provides a debtor, who is unable to meet his or her financial commitments, with a process for eliminating their debts in an orderly manner. When you are in bankruptcy, no unsecured creditor can garnishee your wages or initiate any other collection action against you (some exceptions like child support payments).
- Bankruptcy usually lasts for 9 or 21 months for the first time, and for a second time is 24 or 36 months
- Income tax debt, payday loans and personal loans from friends & family can be included.
- Some debts cannot be discharged, such as child & spousal support, student loans (less than 7 years old), criminal and vehicular fines and debts arising from fraud.
- Secured creditors remain outside the bankruptcy process and payments to them continue if security is not returned.
- Payments in a bankruptcy are calculated based on net household monthly income & asset value.
Many people who are experiencing financial stress are relieved to discover that the majority of rumours surrounding their assets and the filing of bankruptcy protection are misleading. These tales are frequently spread by credit collections people who want to keep you as far away as possible from the offices of Morataya & Associates. They will often say and do anything to keep you from filing Bankruptcy Protection.
It’s essential, when you meet with your licence insolvency counsellor at Morataya & Associates, that you provide information about all of your assets. Based on this analysis, we can then provide you with the most appropriate advice for your specific situation BEFORE you sign anything.
"I could not sleep at night"
I was so deep in debt; I could not sleep at night. Thanks to Morataya & Associates debt relief program, I finally have peace of mind. They gave me the trust I needed to resolve my problem.