What is required of you and me in bankruptcy?
When people come into my office, they have an idea of what bankruptcy is but they don’t know what it entails or what is needed from them in order to file bankruptcy. It’s actually fairly simple. There are tasks that you will need to do, and tasks that I will do as well. If there are any questions along the way, we are always here to help you out. Remember, you’re not alone in this. It is my job to work WITH you.
What is required of YOU during the bankruptcy process?
The duties of a bankrupt are set out in section 158 of the Bankruptcy and Insolvency Act. However, some of the more common duties are as follows:
- Disclose all of your assets and liabilities to the Trustee.
- Advise the Trustee of any property disposed of in the past year by sale, gift or redemption.
- Surrender all credit cards to the Trustee, even if at a zero balance.
- If requested, attend an examination before the Official Receiver (see item 8 for definition).
- Attend the first meeting of creditors, if required.
- File monthly reports of your income and expenses including verification of your income and child & spousal support payments (as applicable).
- Attend two financial counselling sessions.
- Advance such payments to the bankruptcy estate as may be required under Income Standards set out by the Superintendent of Bankruptcy.
- File all outstanding income tax and GST returns, as applicable.
- Advise the Trustee in writing of any changes in home address.
- Generally assist the Trustee in administering the estate.
Make sure you’re aware of your requirements before you decide to file bankruptcy. We will however go over your requirements if you decide to meet with us to review your situation.
What is required of your TRUSTEE during the bankruptcy process?
A Licensed Insolvency Trustee is an officer of the court with an obligation to protect the rights of a bankrupt individual while ensuring that the interests of creditors are also protected. The Trustee’s duties are defined by the Bankruptcy and Insolvency Act, but include the following:
- Provide you with an initial assessment and financial counselling.
- File the assignment in bankruptcy with the Official Receiver.
- Ensure the stay of proceedings protecting you from your creditors is enforced.
- Review your financial affairs as required by legislation.
- Realize/sell assets which are not free from seizure as set out under provincial legislation (we will review these with you in our initial meeting).
- Receive and review the claims of creditors.
- Provide a due accounting of the estate administration to the Official Receiver, the bankrupt, creditors and the court.
- Apply for your discharge from bankruptcy, as appropriate.
- Apply for the Trustee’s discharge.
- And all such other matters more specifically defined in the Act.
Although the list may look long, we are here to help you and provide assistance throughout the process. If you’re in debt, and need help getting back on track, contact our office today. We offer free, no-obligation consultations on evenings and weekends to meet your needs.