Bankruptcy is a legal process where the debtor (the person who owes the money) surrenders his or her assets. In exchange for this, their debt is discharged (released), subject to certain conditions. There are certain debts which are not released and these debts include, but are not limited to: student loans less than 10 years old, fines, alimony and support.

There are certain limits to which assets are surrendered in a bankruptcy in Windsor. The first, and sometimes most important consideration, is whether or not there is a lien on the assets. For example, if you have a house that is fully mortgaged, the bankruptcy will not seize the house. There are special considerations if you have a vehicle with a lien on it and we will be happy to speak with, or email you, about your vehicle. There are other exemptions allowing the bankrupt to keep the assets. These exemptions apply to furniture, clothing, and a vehicle (if there isn’t a lien).

During the course of the bankruptcy, there are duties to be performed such as submitting monthly income and expense statements, making payments, and attending 2 financial management sessions. These duties are discussed in greater detail in other blog entries.

If you want to learn more about bankruptcy and if it is the best option for you, call me in Windsor at 519-250-8060 or e-mail me to arrange a free initial consultation.