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Bankruptcy lawyer in Toronto Introduction.
Canada is recognized for its cultural diversity, but it can be a battle
to locate trustworthy information on the nation's laws.
Bankruptcy is a difficult topic to learn
about, both learning the technical side and dealing with the emotional one.
If you or your company are thinking about bankruptcy, you might think you need
a bankruptcy lawyer in Toronto, however, you do not necessarily require one.
A licensed insolvency trustee in Toronto, (formerly called a Bankruptcy trustee
in Toronto), can help you pick the perfect insolvency process for you and make
certain that you survive it as best as possible.
In this Brandon's Blog,
I discuss the roles of a bankruptcy lawyer in Toronto and a licensed insolvency
trustee. Sometimes they can overlap and many times they do not.
We will take a detailed look
at a bankruptcy lawyer in Toronto versus a licensed insolvency trustee.
We will discuss the differences between
the two and exactly how they can each help you.
Bankruptcy lawyer in Toronto.
Do you need one to file personal
bankruptcy? Whether it is personal bankruptcy
proceedings or one of the formal alternatives to bankruptcy,
such as a consumer proposal or Division I proposal that is being contemplated,
a bankruptcy lawyer in Toronto or elsewhere is not involved in the actual
bankruptcy filing or the Canada restructuring and insolvency filing.
That is what trustees in bankruptcy do.
When a person or company is contemplating
an insolvency process, they can get a no cost consultation
with any one of the bankruptcy trustees they choose to meet with.
During the consultation, information is gathered by the trustee,
analyzed and possible solutions are discussed.
Trustees must always be careful to not
tread into areas that could possibly give them a conflict in providing their
financial services. People wanting advice on asset transfers,
asset protection, or preferring one or more creditors over
others are areas that trustees should not wade into.
In situations like that, I always advise potential bankruptcy clients,
there is no privilege in our discussions and we should not talk about
those things so that I will not be conflicted.
Rather, the person should get advice
from a bankruptcy lawyer in Toronto or elsewhere where the discussions
and the legal advice are protected by solicitor client privilege.
Do you need a personal bankruptcy lawyer
in Toronto to get your bankruptcy discharge?
As I have written before, in several Brandon's Blogs,
there are six possible outcomes in a bankruptcy application for discharge.
This depends on whether the discharge is
being opposed by either the trustee and/or one or more creditors.
The possible bankruptcy discharge outcomes are.
Automatic - This discharge is absolute
and is given by the trustee at the earliest possible time
the bankrupt person is entitled to a discharge.
It means that the bankrupt has performed
all of his or her duties,
has fully cooperated with the trustee, and nobody has opposed the discharge.
Absolute - An absolute discharge is
obtained when the trustee issues the automatic discharge.
It is also possible to obtain an absolute discharge
when a creditor opposes the bankruptcy
discharge, the matter goes to court for a hearing.
But the court does not believe
the evidence presented by the opposing creditor is persuasive,
and the court orders an absolute discharge. Conditional - In this type of discharge
there was opposition to the bankrupt receiving an absolute discharge.
The court considered the evidence
and concluded that the bankrupt must fulfill one or more conditions before
being entitled to a discharge from bankruptcy.
More often than not,
a conditional discharge includes a certain amount of money the bankrupt must pay
to the trustee for the general benefit of the creditors.
Suspended -
A suspended discharge is given when there is opposition to the bankrupt's
discharge and the matter goes to court for a discharge hearing.
Based on the evidence, the court believes that the bankrupt,
either before or during the bankruptcy estate file administration, has conducted
himself or herself in such a way that although a discharge will be given,
it should be delayed. The suspension acts to delay the discharge
and can be combined with conditions. Refused - The bankrupt's discharge was
opposed probably by at least the trustee and probably one or more creditors.
There is sufficient evidence before
the court that the bankrupt has not lived up to his or her duties and has probably
failed to fully cooperate and provide full disclosure to the trustee.
The court, based on the evidence,
refuses to consider the bankruptcy application for discharge until such time
as the bankrupt performs all duties and discloses all information.
No order - This is not an actual discharge type,
but can be the outcome of a discharge hearing.
The court can issue a no order instead of a refusal.
The facts are probably similar to when the court can issue a refusal.
However, in a no order situation, the bankrupt remains in bankruptcy
but the trustee is then free to pursue its discharge.
Once the trustee gets its discharge,
the bankrupt loses the protection offered by the stay of proceedings.
Creditors are then free to pursue all of their rights and remedies against
the bankrupt in the enforcement of their trying to collect their respective debts.
When the time comes for the bankrupt to get his or her discharge from bankruptcy
if the trustee or creditor opposes the bankrupt would be well advised
to consult with a bankruptcy lawyer in Toronto or elsewhere.
The trustee cannot give an automatic
discharge and the matter is going to court for a trial.
The bankrupt should get the benefit
of legal advice and probably will need to retain the lawyer to provide legal
services in representing the bankrupt in court.
That is not the job of the trustee.
Corporate bankruptcy in Canada, corporate bankruptcy lawyer in Toronto, Canada.
Do you need one to file corporate bankruptcy?
As I will explain,
every Canadian corporate insolvency file requires probably several,
not just one bankruptcy lawyer in Toronto or elsewhere.
Insolvency law is complex and lawyers will help all the parties involved.
The current economic climate in Canada is going to be challenging for Canadian
businesses, and I expect there will be many financial difficulties.
Government COVID-19 support programs are scheduled to end soon.
Companies have been tapped out while shut
down, just trying to stay alive with little or no revenue being earned.
Companies will need cash now that it is time to start everything up again.
No doubt there will be business casualties.
However, not all businesses are created equal.
Some will be able to restructure, some will file for bankruptcy,
and others will merely shut their doors and fade away.
Among the keystones of a restructuring
proceeding under either the Companies' Creditors Arrangement Act or
the Bankruptcy and Insolvency Act is the debt workout.
The restructuring is designed to maintain the debtor's business and negotiate
a financial debt repayment strategy with its creditors.
The aim is to save jobs,
allow the company to continue while avoiding bankruptcy liquidation.
Key components of a debt workout normally
include debtor in possession lending, (DIP lending),
while the company is reorganizing, new capital for the company coming out of its
restructuring and getting unsecured creditors and possibly secured creditors
to agree to accept less than they are owed.
In the very large corporate restructuring files, there are normally lending
syndicates due to large and complex lending arrangements.
They too will need lawyers to help them with the insolvency law.
If a restructuring proceeding is not
possible or does not succeed, then either the company's secured creditor
will begin receivership enforcement proceedings or the company will file
an assignment in bankruptcy, or a creditor will launch a bankruptcy
application to put the company into bankruptcy.
In every corporate insolvency file,
legal services are required by all the stakeholders.
Canadian counsel plays an important part in providing advice.
In the larger files,
a large team of lawyers will be needed for both the company and its main creditors.
The board of directors will need their own independent legal team.
The bankruptcy trustee in Toronto will also need a dedicated team of lawyers
to help navigate through the formal restructuring in court or help in a court
appointed receivership, private receivership or bankruptcy.
As you can see in pretty well every
corporate file, a bankruptcy lawyer in Toronto or
elsewhere is pretty well a must-have requirement.
Lawyers will be able to help the company, its board of directors,
its creditors and the insolvency professional create effective solutions.
The best ones will also make sure that they are also practical solutions.
Other situations where you can need a bankruptcy lawyer in Toronto,
Barrie, GTA or elsewhere. When looking for a bankruptcy lawyer in Toronto,
Barrie, GTA and elsewhere, you want to find one that has substantial experience.
Depending on the situation you or your company are involved in,
the experience could be in one or more of financial reorganizations;
debt reorganizations and debt restructurings; debtor legal rights
and creditor rights; security enforcement; forbearance, standstill arrangements;
lender liability suits; receivership and related matters for banks
or other secured lenders court and privately appointed receivers;
insolvency and bankruptcy litigation or other complex matters;
and acting for receivers and trustees, debtors, secured creditors,
unsecured creditors or any other stakeholder in an insolvency process.
Take your first step towards a debt free life.
I hope that you found this bankruptcy
lawyer in Toronto Brandon's Blog interesting and that you now have a better
appreciation for when getting bankruptcy, legal advice as necessary.
Problems will arise when you are cash starved and in debt.
There are several insolvency processes
available to a person or company with too much debt.
If you were concerned because you or your business are dealing with substantial debt
challenges, you need debt help and you assume bankruptcy is your only option.
Call me.
It is not your fault that you remain in this way.
You have actually been only shown the old ways to try to deal with financial issues.
These old ways did not work anymore.
The Ira Smith Team utilizes new modern day ways to get you out of your debt
difficulties with debt relief options as alternatives to bankruptcy.
We can get you the relief you need and so deserve.
Our professional advice will create for you a personalized debt free plan
for you or your company during our no cost initial consultation.
The tension put upon you is big.
We know your discomfort factors.
We will check out your entire situation and design a new approach that is as
unique as you and your problems, financial and emotional.
We will take the weight off of your
shoulders and blow away the dark cloud hanging over you.
We will design a death settlement strategy for you.
We know that we can help you now.
We understand that people and businesses
facing financial issues need a realistic lifeline and practical financial advice.
There is no one solution fits all method with the Ira Smith Team.
Not everyone has to file bankruptcy in Canada.
The majority of our clients never do is we know the alternatives to bankruptcy.
We help many people and companies stay
clear of filing an assignment in bankruptcy.
That is why we can establish a new
restructuring procedure for paying down debt that will be built just for you.
It will be as one of a kind as
the economic issues and discomfort you are encountering.
If any one of these seems familiar to you
and you are serious about getting the solution, you need to become debt free.
Contact the Ira smith trustee & receiver inc.
today.
Call us now for a no cost bankruptcy consultation.