Who contacts my Creditors if I declare Bankruptcy?
When experiencing financial difficulty, it may seem like the creditor’s phone calls are never ending. Not having an answer and not being able to find feasible solutions may be a reason why many debtors fear the confrontation and communication with creditors.
If you have researched your options and bankruptcy is your choice, the bankruptcy trustee will contact your creditors once you have filed the proper documents. This will stop harassment and collection activities such as pay roll garnishees.
Yes, you can be forced into bankruptcy. An unsecured creditor who is owed more than $1,000 can file in court a petition to force you into bankruptcy. The creditor must prove that you have committed an act of bankruptcy. For example, a fraudulent transfer of property or that you have not paid your bills. Both you and the creditor, who has filed the petition, will make representations in court and if the petition is allowed, a Court order will be issued forcing you into bankruptcy. The Trustee is usually named by the creditor who applies to court for a receiving order. A bankruptcy is an order of the court placing you into bankruptcy.
Will I be able to get a mortgage renewal after bankruptcy?
First, you must find out if your mortgage contains a clause giving the lender the right to foreclose. If the answer is yes, I suggest you talk to a trustee to consider your options.
However, if you have income, it is in the best interest of the lender to continue receiving interest payments. Therefore, in most cases you will be able to renew your mortgage even after you go bankrupt. The lender normally only looks at your payment history to make sure there that there are no NSF cheques or problems with your payments. The lender will be able to increase the mortgage and renew the existing mortgage.
The classified section of local newspapers often contains bankruptcy notices. In general, bankruptcy advertisements are required only in corporate fillings, or where an individual has assets whose resale value exceeds $15,000. For most people filing a bankruptcy, assets are well under that amount. If a person has assets to the extent that a newspaper notice would be required, and is uncomfortable with this possibility, the best approach would be to discuss all alternatives with a Trustee.