Too late for Bankruptcy?

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Too late for Bankruptcy?
« on: August 13, 2014, 02:51:49 PM »
I have met with a trustee and have been (admittedly slowly) filling out bankruptcy paperwork.  Today I got served with legal papers from one of my creditors.  Our life circumstances have dramatically changed and we only have one part-time income at the moment so there is no money to be had.  Does anybody know if it is too late for me to declare bankruptcy on that part of my debt?  Thanks.



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Re: Too late for Bankruptcy?
« Reply #1 on: August 13, 2014, 08:31:49 PM »
No, it's not too late. As soon as you file the papers, all creditors must stop collection activities against you, unless this is in relation to a secured debt, like a house or car.  While there are certain exeptions, like for CRA or if someone places a caution/lien against your property, the fact that the creditor started legal action against you is essentially meaningless. It only means that they are trying a different method of debt collection.

Here is some of the text from the legislation:

69.3 (1) Subject to subsections (1.1) and (2)
and sections 69.4 and 69.5, on the bankruptcy
of any debtor, no creditor has any remedy
against the debtor or the debtor’s property, or
shall commence or continue any action, execution
or other proceedings, for the recovery of a
claim provable in bankruptcy.


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