How To Declare Bankruptcy In Canada
Declaring bankruptcy is not as simple as standing up and yelling out "I declare bankruptcy", and then cutting up your credit cards. Unfortunately it is a legal proceeding with a lot of steps. Read the following process to determine all the necessary steps, and let us know if you have any questions.
STEP 1: Meet face to face for an initial consultation with A Licensed Insolvency Trustee.
A Licensed Insolvency Trustee is a compassionate, knowledgeable, and highly educated individual who will provide you with a financial assessment in order to determine all the facts of your case. They will ask you questions in order to determine:
The LIT will look all the information and let you know what the cost of the bankruptcy will be.
NOTE THERE SHOULD BE NO COST TO THIS ASSESSMENT. IF YOU ARE PAYING ANY FEES UP FRONT YOU ARE GETTING RIPPED OFF.
STEP 2: Retain the services of the Trustee.
The Trustee is an officer of the court and licensed by the Superintendent of Bankruptcy so he must ensure the process is validated with supporting documentation.
STEP 3: File the paperwork with the Superintendent of Bankruptcy
Once the Trustee has all of your paperwork together he will prepare legal documentation for you to sign. This paperwork will be filed with the Superintendent of Bankruptcy, and then mailed out to all of your creditors.
At this point YOU ARE BANKRUPT, you stop paying your bills and your creditors are frozen. All of your debts will be discharged as long as you comply with the required duties.
Step 4: Credit Counselling
You take a credit counselling class about budgeting for the future. After your bankruptcy is filed, you will be required to take more classes about debtor education.
Step 5: Receive your discharge.
If you have completed all of your duties, and nobody objects to your discharge, then you are free from all of your debt.
For a complete financial assessment contact one of our experts. We are able to coach you through the process and help you decide how to declare bankruptcy. We will meet you in person with a free no obligation assessment. We want to hear about your situation.
Call or email us.