If your wages are presently being garnisheed, your bankruptcy will, in most cases, stop the garnishee. Shortly after you have signed the bankruptcy documents the Trustee will contact your creditors advising them of your bankruptcy. If creditors contact you between the time you file for bankruptcy and the time they are notified of the bankruptcy, you should refer them to the Trustee. Your bankruptcy mill be recorded in the Credit Bureau records. Lending institutions will consider your bankruptcy as one of many factors in rating your future credit status.
Bankruptcy eliminates most debts.
Under certain conditions, student loans may remain after your bankruptcy. The Trustee's fee is set by regulation under The Bankruptcy and Insolvency Act. A bankrupt, however, is expected to make payments of surplus income to the Trustee. This payment is calculated by referring to the standards issued by the Superintendent of Bankruptcy and the bankrupt's personal and family circumstances. Since bankruptcy is allowing you a fresh start, the Trustee will help you with financial counselling so that you can better manage your money in the future.