Insolvency and Enforcement Proceedings

Not necessarily. The law grants significant protections to a residential home, and in many cases it is possible to form a solution that keeps the roof over your head, for example through an arrangement or alternative financing. Each case is examined on its merits, and this is exactly one of the issues we will examine at the consultation meeting.

Under section 163 of the Insolvency and Economic Rehabilitation Law, the payment period set in the economic rehabilitation order is, as a rule, three years from the date of the order. The court may shorten it where personal circumstances justify this, and may extend it — for example where the debtor acted in bad faith in the proceedings, did not cooperate with the trustee or the Official Receiver, or where there are exceptional economic circumstances. Where the conditions are met, the court may also grant an immediate discharge, with no payment period. The duration of the whole proceeding, including the stages before the order, depends on the court, the Official Receiver and the trustee, so the office does not give time estimates.

Not at all. Sometimes consolidating files, a debt arrangement with the creditors, or specific defense claims (such as opposition to enforcement of a promissory note) will be a faster and cheaper solution. We examine all the alternatives before recommending a course of action.

A proof of debt must be filed within the time set by law, and the proceedings must be followed actively. Professional representation at these stages, including at creditors' meetings and in objections, directly affects the rate of recovery.