Are your debt problems weighing heavily on your shoulders? Thinking of going into personal bankruptcy? You need a Licensed Insolvency Trustee to help you get a clearer picture of personal bankruptcy. The 8 steps to personal bankruptcy will allow you to learn more about the process to get rid of your debt for good.
Step 1: an appointment with a licensed insolvency trustee
There are firms of licensed insolvency trustees. So you can refer to that expertise during a free consultation . Also, during a meeting, you will confide in your personal financial situation. Then, we will determine the possible solution available to you.
What’s more, the role of a Licensed Insolvency Trustee and Creators of Financial Health is to help you resolve your financial situation. Indeed, they will assess your financial situation taking into account several elements (your debts and your budget). Also, we will explain the advantages and consequences of the various debt solutions (personal bankruptcy, consumer proposal or others) to resolve your financial difficulties. In short, we will clearly explain the difference between a personal bankruptcy and a consumer proposal so you can make the right decision.
Step 2: the first meeting
Then they will fill out the prescribed forms. Your personal bankruptcy case will be filed with the Office of the Superintendent of Bankruptcy .
So from that point on you will then be officially declared personal bankruptcy and we will deal directly with your creditors.
Fear not, here are some immediate benefits of filing for personal bankruptcy:
You will stop making payments to your unsecured creditors;
The seizures on your salary will be suspended;
The proceedings brought against you by your creditors will be stayed.
Step 3: cessation of property
In some cases, we may be able to sell some of your goods. Here are the assets you can keep . Following this step, you will make a single monthly payment to your trustee.
In addition, the money from the sale of the property will be placed in trust. Thus, it will be distributed among your creditors. So, once the declaration of your personal bankruptcy, you will no longer have the property that you have transferred.
Also, the amount of installments you will be required to pay will be determined with your financial health creator . In this case, the amount will be calculated by reviewing the total income, standards of the Office of the Superintendent of Bankruptcy and personal and family situation.
Step 4: tell your creditors about bankruptcy
In some very rare cases, creditors or the Office of the Superintendent of Bankruptcy may request a meeting of creditors. You will have to attend if necessary.
In fact, the purpose of the meeting is to:
Allow creditors to learn about bankruptcy;
Confirm the appointment of the trustee;
Appoint up to 5 inspectors to oversee the administration of the asset;
Allow creditors to give instructions to the trustee.
Step 5: an interrogation (in some cases)
If necessary, you may be interviewed by an officer from the Office of the Superintendent of Bankruptcy.
After declaring personal bankruptcy , you may be interviewed by a representative from the Office of the Superintendent of Bankruptcy. The object of the questioning is to understand the quality of the bankrupt. In short, your conduct, the causes leading to bankruptcy and the disposition of your assets.
Step 6: two mandatory consultation sessions
The purpose of financial counseling sessions to help you analyze and understand the causes of your bankruptcy. These sessions will provide and help you manage your financial situation.
Step 7: intent report
Indeed, we will need to prepare a report for the Office of the Superintendent of Bankruptcy outlining your actions during the personal bankruptcy.
In some cases, we will need to prepare a report regarding your release request. This report describes your financial situation and presents an analysis of the following:
The causes of your personal bankruptcy
How you discharged your obligations under the Bankruptcy and Insolvency Act (BIA)
Your conduct before and after personal bankruptcy
Whether or not you have been found guilty of an offense under the BIA (sections 198 to 208) and
any other fact that could justify a court opposition to your release
Step 8: discharge from bankruptcy
First, you will be automatically discharged nine months after filing for personal bankruptcy if you meet the following criteria:
This is your first bankruptcy;
Your discharge is not contested by the Office of the Superintendent of Bankruptcy, the trustee or a creditor;
You have not refused or failed to participate in counseling sessions;
You are not required to pay any part of your excess income to bankruptcy assets according to the standards set by the OSB.
However, when you have to make surplus income payments, the eligibility for statutory release will be made later. Effectively, it will be done after having paid part of the excess income in bankruptcy for 21 months.
Finally, in a second bankruptcy, if you don’t make any excess income payments, your statutory discharge will be 24 months after the bankruptcy. On the other hand, if you have to make payments, you will only be eligible for discharge after paying some of the excess income into bankruptcy for 36 months.