HOW DOES A PERSON GO BANKRUPT?
HOW A BANKRUPTCY WORKS
(Assuming first time bankruptcy, no surplus income, no realizable assets)
1. Free initial Consultation with Tom or Megan to determine if bankruptcy is the correct option
a. Thoroughly complete an extensive application form either during the initial meeting or it may be taken away and returned completed
b. Review the application with Tom or Megan to ensure all required information has been provided – may be reviewed by telephone
2. Sign official documentation – with either Tom or Megan
a. The signed documents are registered electronically – bankruptcy commences
b. Make initial payment for bankruptcy – further agreed upon payments for a term of not more than 21 months
3. Report income earned each month for duration of bankruptcy – either on forms (provided) or by email using CD spreadsheet (provided)
4. Attend at required counselling sessions
a. First session 10 – 60 days after bankruptcy
b. Second session 30 days after the first session but not more than 210 days after bankruptcy
5. Provide Tom and Megan with the information required to complete income tax returns for the year of bankruptcy
a. Also provide information for the year immediately preceding year of bankruptcy if that return has not already been filed
6. Discharge occurs automatically upon expiration of nine months plus one day.