519-646-2222Some Canadians cannot file for bankruptcy
This blog was inspired by an article posted on the Bankruptcy Canada website.
This is the criteria for people to qualify make an assignment into bankruptcy in Canada:
1. Have at least one thousand dollars ($1,000) worth of debt;
2. Be unable to pay debts as they become due;
3. Ceased paying creditors in the ordinary course of business as debts become due; or
4. If all property was sold under a legal process the funds resulting from the sale would not be sufficient to pay of his or her debts.
It follows then that the following people cannot avail themselves of the bankruptcy process:
1. Those who owe less than a thousand dollars $1,000 worth of debt;
2. People who have no problems paying their bills, using their own money;
3. Those who are able to pay their bills in the ordinary course of business (without borrowing from one form of credit to pay another); or
4. Those who own enough property that could be sold under a legal process (wholly owned non-exempt property) that the funds resulting from the sale would be enough to apy all their debts in full.