Bankruptcy in Canada

Bankruptcy in Canada "The bankruptcy procedure in Canada begins and concludes with a licensed Trustee in Bankruptcy. If you are contemplating filing for bankruptcy in Canada, you are required to meet with a trustee who will assess your financial situation and advise you on your options. If he/she believes that there are better options than bankruptcy, you will be advised to explore them first. However, if he/she determines that there is no better solution to your debt problems than filing for bankruptcy, he/she will ensure that you understand how the bankruptcy process in Canada works, what you need to do, and what your responsibilities are during the bankruptcy process.When you decide to file for bankruptcy in Canada, the trustee will ask you to sign a legal document known as Assignment in Bankruptcy, which is then submitted to the Office of the Superintendent of Bankruptcy (OSB). When the court receives the document containing your signature and indicating that you have voluntarily filed for bankruptcy, it will appoint your trustee as the administrator of your estate. When the trustee receives the Certificate of Appointment, you are officially declared insolvent, and creditor phone calls cease. Possibly not on the same day, but shortly.Your ""job"" is far from complete after declaring bankruptcy. To obtain the bankruptcy discharge, you must fulfill all of your responsibilities and obligations throughout the bankruptcy procedure. These include submitting a monthly income report to the trustee, assisting the trustee with the disposition of your assets, meeting with the trustee for credit counseling, and paying your monthly bankruptcy fee as determined by the OSB. If you fulfill all of your obligations and responsibilities and no one objects, you will be discharged from bankruptcy after nine months. This means you are not required to file any documents or notify your trustee that the nine-month period has expired. After exactly nine months, the court will send you a document granting you your discharge.With a few exceptions, such as student loans, child support, etc., you are discharged from all of your debts in Canada upon bankruptcy discharge. However, if you have not fulfilled all of your responsibilities and obligations within nine months, your bankruptcy period may be extended by an additional year. Therefore, you should ensure that you thoroughly cooperate with your trustee and follow the ""rules"" because, once discharged, you will no longer have any debts or bankruptcy-related responsibilities, allowing you to start over.
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