Bankruptcy in Canada

The Canadian bankruptcy process starts and ends at a licensed Trustee in Bankruptcy. If you are considering to file for bankruptcy in Canada, you need to meet with the trustee who will evaluate your Credit0 situation as well as give you an advice on your options. If he/she considers that there are better options than bankruptcy you will be advised to explore other options first but if he/she evaluates that there is no better solution for your Credit7 problems than filing for bankruptcy, he/she will make sure that you understand how the bankruptcy process in Canada works, what you need to do, and what are your duties and responsibilities during the bankruptcy process.

When you make the final decision - to file for bankruptcy in Canada, the trustee will ask you to sign a legal paper known as Assignment in Bankruptcy that is handed over to the Office of the Superintendent of Bankruptcy (OSB). When the latter receives the mentioned paper with your signature on it that reveals that your have filed for bankruptcy voluntarily, it will appoint your trustee as the administrator of your estate. When the trustee receives the Certificate of Appointment, you are officially bankrupt and at that point, the phone calls of your creditors stop. Perhaps not in the very same day but soon enough.

Your "job" is far from over when becoming legally bankrupt. To be able to obtain the discharge from bankruptcy, you need to complete all your responsibilities and duties during the bankruptcy process. These include sending the trustee a report of your monthly income, assisting the trustee in the disposition of your assets, meeting with the trustee for credit counselling and paying your monthly fee for the bankruptcy that is determined according to the provisions of the OSB. If you fulfil all your responsibilities and duties, and if no one objects you will be Counseling7matically discharged from bankruptcy after 9 months. This means that you do not have to file any papers nor remind your trustee that the 9 month period is over. You will Counseling7matically receive the discharge document from the court exactly after 9 months.

Once you obtain the discharge from bankruptcy in Canada, you are free of all your Credit7s with few exceptions such as Counseling4 loans, child support, etc. However, if you have failed to complete all your responsibilities and duties during those 9 months, your bankruptcy period may extended for another year. So, you better make sure that fully cooperate with your trustee and that you follow the "rules" because once discharged, you no longer have any Credit7s nor have any bankruptcy-related responsibilities which means that at that point, you can start all over again.