Going Bankrupt – where to start

Jars with credit cards
May 16, 2022

If you are thinking of going bankrupt try to keep in mind it is a step by step process, with each step contributing to the outcome – discharge.  The first step is to call us at 519-646-2222 to arrange to meet with a Licensed Insolvency Trustee.  This allows you to discuss your options and ensure going bankrupt is the right solution.  This initial meeting is intended to be exploratory but be prepared to provide financial information.

Tell us about your financial life, who contributes to the household income, how much debt you are responsible for as well details about financial obligations such as spousal or child support.  You must tell us if you have co-signers or guarantors, what property you own, if you have any secured loans (car loans/mortgages, etc.).

We will also want to know about any investments you own including RSPs, DPSPs, Mutual Funds, Stocks, Life Insurance and so on.  Be sure to bring along as much information as you can, including recent statements from creditors and investment administrators.

During the meeting we may compete an application form with you, if there are any missing details, we will ask you to provide them at your next appointment.  Assuming we have all the information we need an appointment will be scheduled for you to sign the official documents to get the process started.  We will also ask you to provide a retainer at that time to cover the initial filing fees.

Bankruptcies are efiled and we are appointed to your estate (file) very quickly, often in under a minute.  Once you are bankrupt the Bankruptcy & Insolvency Act protects you from actions by your creditors.  But you still have things to do – this list isn’t exhaustive but it will give you an idea of what to expect:

  1. Attend at two counselling sessions
  2. Sign required documents
  3. Report your monthly income to the LIT using budget sheets (provided)
  4. Provide income tax information for completion of outstanding returns
  5. Attend creditor meetings – if required
  6. Provide the LIT with other information to assist in administering your estate

As long as you do what is required of you, as a first time bankrupt you would be entitled to an automatic discharge on the expiration of nine months.  A second or subsequent bankruptcy will usually take a minimum of twenty-four months to get discharged.  It is possible, under rare and extraordinary circumstances, to get an early discharge by applying to court.

To get more information call the office at 519-646-2222