Canadian Chat → [Serious] Debt

I guess there are cases where you can, but if your house is where the bulk of the equity is and the sale of your home is what pays off the creditors, I'm fairly certain you can say so long to your house. Certainly what happened to my parents many years ago anyways. With the credit issues described above, I would be doubtful any bank would hand out a second mortgage.

the OP needs to speak to a bankruptcy trustee, not a bankruptcy lawyer.

A bankruptcy lawyer cannot help them.

to clarify, in the US: they use the term bankruptcy lawyer. In Canada, it is bankruptcy trustee. Bankruptcy lawyers in Canada deal with business insolvencies 99.9% of the time. All the OP has to do is research for a good trustee, make an appointment, sit down and speak to the trustee and everything with move forward from there.

They should apply for the "Bankruptcy Assistance Program".

»www.servicecanada.gc.ca/ ··· ce.shtml

Only if they are unsuccessful at hiring at least 2 trustees.

This is something I never understood, you're on the verge of bankruptcy, yet you have to hire someone to help you navigate those waters, but don't have the money to pay them???

So the government kicks in cash to help you go bankrupt.

If that doesn't sound retarded I don't know what does.

You don't have to hire them. You have to contact then, tell them the situation and see the price they charge you. If you can afford it, then you must go with them. If you can't, only then will the government help you.

It makes sense as people should at least try and see if it's within their means to hire someone or not before they ask for help, instead of just assuming that it's too expensive.

Trustees are paid from the bankruptcy proceedings. There might be a small fee to open a file, but I'm not sure. Their fees are government regulated and built into the entire process so that when you pay your monthly amount into the bankruptcy, a portion goes to the trustee and the remainder is divided up amongst the creditors. I said hire, because in a sense you are hiring them since it would be your choice on what firm you go with. They represent you, not your creditors and their interests are your interests (or supposed to be).