If bankruptcy is the option you choose, you can work with Gregory and
his team, as well as a trustee, to complete the required forms. The
trustee will then file these documents with the OSB and you will be
formally declared bankrupt.
From that point on, the trustee will deal directly with your creditors on your behalf. Once you have been declared bankrupt
- You will stop making payments directly to your unsecured creditors;
- Any garnishments against your salary will stop; and
any lawsuits against you by your creditors will also be stopped.
- Your assets can be sold by the trustee if you choose to surrender them.
Once you have been declared bankrupt, the trustee sells your assets,
including any acquired during your bankruptcy. Assets that are exempted
by provincial and federal laws are excluded from this sale. The trustee
will hold the money raised by the sale in trust for distribution to your
creditors.
If you choose not to surrender your assets
You will pay the portion of the realizable equity into the proposal on top of your unsecured debt to satisfy your creditors.
Your creditors will be notified
After you declare bankruptcy, the trustee will notify all your creditors about your bankruptcy.
Your creditors may hold a meeting
Sometimes, a meeting of creditors is required or requested. At the
meeting, creditors can obtain information about the bankruptcy and give
direction to the trustee. If a meeting is called, you will be required
to attend.
You may be examined by the OSB
After you file for bankruptcy, a representative of the OSB may
examine you under oath. The purpose of the examination is to ask you
about your conduct, the causes of the bankruptcy and the disposition of
your property.
You will attend two financial counselling sessions
As part of your bankruptcy, you will be required to attend two
financial counselling sessions. The purpose of these sessions is to help
you understand the causes of your bankruptcy and to assist you in
managing your financial affairs in the future.
You may make “surplus income” payments
In addition to paying the trustee’s fees, you may be required to make
additional payments to your trustee for distribution to your creditors.
These are called surplus income payments. Surplus income is the part of
your earnings that exceeds the amount of income a family needs to
maintain a reasonable standard of living. This amount is set by the OSB
annually. The larger your family, the more you are allowed to keep; the
more you earn, the more you are required to contribute.
If your surplus income is more than $200 per month, you will be
required to contribute 50% of that amount and will be help in bankruptcy
for a longer term.
You will be discharged from bankruptcy
A discharge releases you from the legal obligation to repay the debts
you had as of the date you filed for bankruptcy, except for specific
types of debts that are excluded by law. These include alimony and child
support payments, student loans (if you stopped being a student less
than seven years ago), court-ordered fines or penalties, and debts
arising from fraud. The timing of your discharge depends on a number of
factors, including whether this is your first bankruptcy, and whether
you are required to make surplus income payments.