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Filing for bankruptcy can provide much needed relief to debtors who have come across unfortunate circumstances. Once bankruptcy is declared, unsecured creditors are no longer able to garnish your wages or initiate collection. Bankruptcy does not protect from secured creditors, who may have a valid security against properties such as cars or houses. The process also does not affect the liability of joint creditors, such as guarantors, co-signers or spouses, so it is important to disclose this information when filing for bankruptcy. 

Bankruptcy is filed through a trustee licensed by the Office of the Superintendent of Bankruptcy. Once you are in contact with the trustee, you must disclose all assets and outstanding debts. The trustee then acts on your behalf, dealing directly with your creditors. The trustee sells your assets and distributes the proceeds to your creditors. He or she will then determine a payment schedule, taking into account your income and personal situations. Going forward, your payments are made to the trustee who will then distribute them to your creditors. 

To learn more about the full process of filing for bankruptcy, consult the website for The Office of the Superintendent of Bankruptcy.