Services - Cooper & Company Ltd.

Bankruptcy

How does bankruptcy work?

Bankruptcy is a legal process in which an insolvent person (someone who owes more than they own and cannot repay their debts as they come due) assigns their non-exempt assets to a Trustee. They are thereby released from their obligation to pay back the eligible debts. All legal actions are stopped in a bankruptcy under consumer protection law (the Bankruptcy and Insolvency Act). You must be discharged from bankruptcy after a set period of time.

How long does bankruptcy last?

Depending on a few things, a bankruptcy can be between 9 and 36 months. A normal, basic bankruptcy is 9 months. If certain basic duties are not performed, a court can extend the length of a bankruptcy to any length and impose conditions on your discharge.

Is there an alternative to bankruptcy?

The bankruptcy law sets out a key alternative to bankruptcy: a consumer proposal.

How will bankruptcy affect my spouse/family?

Your bankruptcy is an individual action – it will not affect the credit rating of your spouse or your family.

What about my house/car/other assets?

An individual is allowed certain personal exemptions on their property in a bankruptcy. This means you can keep your car if it is under a certain value. And you can keep your house if it has no equity value. You are also allowed to keep all personal effects such as furniture and jewelry, provided you have nothing that is of significant value (e.g., art collection, expensive hobby car etc.).

What does bankruptcy cost?

It depends on a number of factors, such as your income, what you own (excluding personal exemptions) and if you have been bankrupt before. It can cost as little as $1,800 ($200 for 9 months) in a basic bankruptcy.

What debts can be included?

All unsecured debts:

Credit card balances
Lines of credit
Personal loans
Retail cards (Future Shop, the Bay etc.)
Bank account overdrafts
Payday loans
Utility balances
Personal income tax owing
Student loan balances (must be out of school more than 7 years)
Shortfalls on secured loans

What if I have joint debts or co-signers?

Your responsibility for your debts is released in a bankruptcy, but not that of anyone who has co-signed or guaranteed a debt of yours. They are then responsible for the entire debt balance.

Will I need to go to court?

What if I win the lottery?

You are legally obligated to tell the Trustee about any lottery winnings. You would only lose whatever amount was required to cover your bankruptcy obligations. The rest you would keep.

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Testimonials

What some of our satisfied clients are saying

For 6 years we invested all of our financial, emotional and physical resources into our business. When the recession hit and access to credit dried up, it hit us hard. As debt piled up and collector harassment increased, we contacted Cooper & Co. for advice. What a relief! They were professional and easy to work with, listening to our concerns, answering questions, and treating us with respect. Cooper & Co. understood us and offered options and solutions that we were unaware of. They helped us avoid bankruptcy. Cooper & Co. took care of everything, allowing us to relax and get our lives back on track.

Howard & Deanne

This is my story. I was laid off in 2009 and was off work for close to 11 months. I had burned through my saving and I was having difficulty maintaining my lifestyle. I soon realized I was hitting bottom and even with the income I was receiving from my new job I didn’t have enough to stave off my creditors. I was at risk of losing my home and my car. Bankruptcy was not an option. I was searching on an Ontario government website where I found a link to ‘cooperco.ca’. I made the call and with Cooper & Company’s counsellors and Trustees I was able to put things back together without losing my car or my home. Legal insolvency is hardly ideal, but it is a way out with a light at the end of the tunnel if you choose to learn from your experience.

Stewart

Filing with Cooper & Co. stopped the garnishee on my wages and got me back my income. I am now on a budget that lets me pay off my debts at a reasonable pace and I can keep my house. Thanks to Cooper & Co. for getting me out of this mess!

Sharon

I had just gone through an extremely messy and expensive divorce and found that my sole income was too little to sustain payments on my car and condo. My credit cards had been run up to try to stay afloat, and I had huge legal bills. I came to Cooper and Co. and they helped me do a consumer proposal I could afford and clear my debts and get on with my life. One payment, no interest. I would recommend Cooper & Co. to anyone. They take the time to listen, tell you your options and let you decide what the right way is.

Allan

Our lifestyle had become too expensive. Too many toys and use of credit – big house, big cars, lots of trips, two boys in traveling hockey – we had bitten off more than we could chew. Plenty of income but poor money management. Once the bills got too high we had to do something. We filed a consumer proposal each and we now pay much less per month in a single 0% interest payment than we did to support our minimum credit card payments. A big thanks to the folks at Cooper & Co.!

Len & Jody

As a struggling single mom trying to run my own small business, I could no longer afford my lifestyle once my client base started dropping. I owed income taxes and GST from years of failing to file, and could not afford to pay it. Cooper & Co. got me into a Consumer Proposal with payments I could afford and now my collectors are off my back. I was able to avoid bankruptcy, my debts will be gone in under 3 years and I am able to sleep at night for the first time in a long time.

Roxanne

Upon the sudden closure of my restaurant business, I needed advice how best to handle outstanding debts civilly and legally. Cooper & Co. made what was a difficult situation for me more tolerable through their understanding of my situation and explanation of the entire process back to front before my moving forward. The bankruptcy process was not the daunting a task I had imagined thanks to the help of the entire team at Cooper & Co who I felt worked with my best interests in mind.

Jan, Restaurant Owner

I’d first heard of Cooper & Co. a full five years before I contacted them. I’d gotten myself into debt, and I was going get myself out. I threw every stray nickel I had at it and by the end of those five years… I was exactly where I’d started. Broke. Depressed. Frustrated. Calling Cooper & Co. was not easy for me. Actually showing up? Adding up my debt in front of a total stranger? Even harder! However, when I sat down with Scott, I realized I was the only person there judging me. There were no lectures; just calm statement of fact and a rational discussion on how to proceed. Scott kept the atmosphere light & respectful and I left Cooper & Co. that first day feeling 10ft tall. After the proposal was set, every payment felt like an accomplishment. When it was paid off in full, you couldn’t wipe the smile off my face. Obviously, a consumer proposal isn’t a cure-all. I still have some bad spending habits to work on. Personal growth isn’t just handed to you, but it does come easier when you’re freed of your burdens and able to focus. Not only that, but knowing how easy it can be to fall into debt makes it easier to avoid the same mistakes later. The gratitude I feel to Cooper & Co. is immense. I would (and do) recommend them highly. Just do yourself a favor: don’t wait five years.