Home > Blog > The 3 Different Types of Personal Insolvency for Debt Relief

Personal Insolvency in BarrieSometimes, personal debts can be so overwhelming that you need assistance to find relief. As your Trustee in Bankruptcy, we will help you determine which personal insolvency solution is best for your situation.

  1. Summary Administration Bankruptcy – The first type of personal insolvency option that may be available to you is summary administration bankruptcy. You can file for this type of bankruptcy if the worth of your assets does not exceed $15,000. This includes the equity in your home, the value of your investments, and any other assets subject to seizure.
  2. Ordinary Administration Bankruptcy – Ordinary administration bankruptcy can be filed either by a corporation or an individual. If you have assets that are worth more than $15,000 at the time you decide to file for bankruptcy, this is the type of bankruptcy you will be required to file for. Under this type of bankruptcy, you must call for and attend a mandatory creditor’s meeting.
  3. Consumer Proposal – A consumer proposal differs from ordinary administration and summary administration because it is not a type of bankruptcy. This personal insolvency option allows a consumer to eliminate a portion of their debt by repaying their debts for a time period of up to five years. In order to qualify, you must owe less than $250,000 to your lenders.

If you are struggling with your finances because of debt, let us help you explore what your different personal insolvency options are, so you can get back on track towards financial freedom and stability.