How do I get the bankrutpcy process started?

October 12, 2012 10:25 pm Published by

You may ask yourself, “How do I get the bankruptcy Process Started?”

  1. Your first step is to come to an interview at the Trustee’s office where your options and any questions you have will be fully answered. You will receive a Information Summary booklet for you to take home and fill out outlining your personal information such as your personal information, a list of your debts and a list of the Value of your Assets and expected income.
  2. This Information Summary booklet is then given back to the Trustee’s office along with you initial cash deposit where applicable. The Trustee will then book a time and date to return where you can come in to sign the official bankruptcy documents that the Trustee will generate from the information provided in your Information Summary booklet
  3. Once you have signed your official documents, the bankruptcy trustee will electronically transmit your bankruptcy information to the Office of the Superintendent of Bankruptcy who in turn will provide information to the Credit Bureaus that you have declared bankruptcy or filed a Proposal.
  4. Within five days of the bankruptcy starting your Trustee will send a copy of your bankruptcy paperwork to each of your creditors, so that they can file a claim with the trustee. this is usually done my Canada Post so it can take a few days before your credits receive your information.
  5. Once bankruptcy is filed, there is an immediate Stay of Proceedings, which means that unsecured creditors cannot begin or continue lawsuits, wage garnishees, or even contact you.
  6. Your trustee will file outstanding tax returns up to the date of bankruptcy. The Trustee has an obligation to file tax returns for the year you declared bankruptcy plus the year just prior. Any money you owe to Canada Revenue Agency will be included in your bankruptcy. Any tax refunds or HST/GST credits received during the bankruptcy will go to the trustee for the benefit of your creditors.
  7. During your bankruptcy, you must fulfill you Duties as a Bankrupt. Some of the more important duties are:
  • Attend a meeting of your creditors, if such a meeting is requested
  • Each month during the bankruptcy, send the trustee proof of your income.
  • Make monthly payments to the trustee, if you have Surplus Income
  • Attend two credit counselling sessions, to learn budgeting and money management skills.
  1. You are eligible to be automatically discharged in nine months if you have never been bankrupt before and if you have no surplus income. Your bankruptcy discharge can be extended beyond this if you have surplus income or been bankrupt before. It is your discharge that cancels your debts.
  2. A note about your bankruptcy will remain on your Credit Report for a minimum of six years after the date of discharge.
  3. Even while the bankruptcy stays on your credit report, you may be able to get credit, depending on the individual lenders. You can help this along by taking active steps to Help Rebuild Your Credit.