With the recent stresses and strains on the economy it is perhaps no surprise that more people than ever have found themselves going online and entering the keywords bankruptcy Toronto. If you are facing financial difficulty it is very important to try and gather as much information as possible about the next step that you have to take.

Bankruptcy should of course be the last option to take as there are many other debt help groups and companies that can help you to restructure your finances and get those companies you own money to back on your side. However if you feel you have no option then there really are a few things that you should know about going bankrupt before you proceed.

First of all you should be aware that in Toronto bankruptcy and bankruptcy laws are set down and regulated by the Bankruptcy and Insolvency Act. The process comes under the auspices of the Superintendent of Bankruptcy who ensures that all of the correct procedures are followed.

One of the most well known results of being declared bankrupt is the prospect of losing your home. The people you owe money to have to be able to use any asset that you may have to try and recover what is owed and in most cases the biggest possible asset is a property. You can lose your home along with any money invested within it so it can be sold quickly on the market and your creditors take what is owed.

In Canada you can be listed as bankrupt for varying lengths of time depending on the situation. The most recent bankruptcy reforms which were launched in 2009 state that is you have what is classed as a normal income and you are paying a reasonable sum of money in relation to your income and it is your first time as a bankrupt that you can be taken off the insolvency list after only nine months.

If your income is seen as being excessive and it is your first offence then you may be listed as bankrupt for 21 months however depending on the scale of the bankruptcy a court may decide to make this period longer.

For those who are being listed as bankrupt for the second time there are different lengths of bankruptcy periods to those mentioned above. If you do not have an over the top income then you can expect to be listed as bankrupt for 24 months. If your income is rated as being excessive again then you can be listed as bankrupt for 36 months.

There is a third alternative which is for those who have a large sum of money owed to the taxman. With this type of debt the legislation does not allow you to be automatically discharged from being bankrupt but instead you do have to go to court to have your name cleared once the debt has been settled.

So as you can see the length of time that going bankrupt can affect you for really does depend on your own individual circumstances however keep in mind that these figures may be extended depending on the severity of the debt that is owed.

Author Bio: If you have been searching far and wide for Bankruptcy Scarborough alternatives that fit your particular lifestyle and situation, then a visit to Killen Landau & Assoiciates is a must.

Category: Finances
Keywords: loans, financial services, bankruptcy, finance, business, customer service, financial security, debt