The Duties Of An Insolvent Person
Filing for a bankruptcy is a big hairy deal. The Bankruptcy and Insolvency Act imposes a certain standard of care and duty on a person who files for bankruptcy. It is vital to know what your duties are during this period.
1. Deliver all non-exempt property to the trustee
- This should seem pretty obvious, that you when you declare bankruptcy you don't get to keep your gun or stamp collection.
- You need to sell these and pay your debts.
2. Deliver Credit Cards to the Trustee
- Yes you do not get to keep those pieces of plastic that you used to get you into this predicament. You are not good with credit, now is the time to learn to manage that green stuff...money! Remember?
3. Deliver any books and records
- The Trustee may appear to be nice, but he doesn't trust a word that comes out of your mouth. Give him the evidence to back up what you say and you will be fine.
4. Attend an examination with the Superintendent of Bankruptcy
- This guy just wants to ask you questions. Be honest and answer the questions. If you lie, well then you can get in trouble. Don't lie.
5. Give Superintendent your statement of affairs.
- The guy wants to know what is up. Tell him about who you owe money to and how much and any other details.
6.Assist the trustee with an inventory of your assets.
- This is more for corporate bankruptcies, but still pretty important to inventory your stamp collection so he knows.
7. Advise Trustee of all property disposed of in the past year.
- Yes the 1995 chrysler Neon you gave to your brother may be at risk if you gave it to him without consideration.
- These transactions are called reviwable. Don't lie, nothing may happen to you.
8. Advise trustee of all gifts and settlements in past 5 years.
- The worst thing to do is give all your stuff away to friends and none to the guy that gave you the money your bankrupting. Not fair dude not fair.
9. Attend the meeting of your creditors.
- Yes the people who you borrowed the money from have a right to know what happened to their money. You need to answer their questions.
10. Assist the trustee in any fashion he may require.
- It's your money, and you know what happened. Trustee may ask you to review the proofs of claim, advise him if there are any false ones, aid him in realizing on your property, execute a power of attorney or other deed, instrument, advise him of any material change in your financial situation,
If you have completed all of your duties, and nobody objects to your discharge, then you are free from all of your debt.