Duties in Bankruptcy Law

What Are My Duties Under Bankruptcy Law?

If you’re struggling with personal debts, insolvency is one of the solutions available to help you improve your situation.

Understanding more about the Bankruptcy & Insolvency Act can help you establish what are the duties in bankruptcy law, and whether or not it’s the right choice for you to deal with your debts.

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About the Bankruptcy & Insolvency Act

The Bankruptcy & Insolvency Act covers all areas of personal bankruptcy.

This piece of legislation covers the particulars of how to file for bankruptcy, as well as the role of the trustee filing the bankruptcy claim.

The Act covers key information related to the person filing for bankruptcy, including what happens if the terms aren’t met.

It’s important to understand bankruptcy conditions fully, as a failure to meet them could mean that your discharge is delayed.

Duties in Bankruptcy Law

If you file for bankruptcy, then you must adhere to all of the conditions set out in Section 158 of the Bankruptcy Act, which include:


  • All assets must be disclosed, and any non-exempt assets are to be delivered to the insolvency trustee;
  • Credit cards must be handed to the trustee and cancelled;
  • You must provide documents requested by the trustee, such as tax returns;
  • Your monthly expenses and household income must be reported to the trustee;
  • All payments must be made;
  • Mandatory attendance at two credit counselling sessions;
  • Mandatory attendance of meetings with either creditors or examinations by the Official Receiver.


A failure to adhere to these conditions, or provision of false information or documents could mean that you’re not eligible for automatic discharge.

The Act states that both the trustee or your creditors can object to your discharge if you break any of the stated conditions.

With a lot of rules to follow, it’s important that you consult with a trustee to ensure you understand everything before you proceed.

Limitations under the Bankruptcy and Insolvency Act

Under the conditions of the Act, you will need to attend two counselling sessions, provide your monthly statements and make repayments as requested.

You will not have to deal with creditors any further, nor make repayments towards your debts.

If you decide to apply for credit of more than $500, you will need to declare that you are an undischarged bankrupt.

Once you have been discharged, you will then be able to begin repairing your credit rating.

What are the duties of a Licensed Insolvency Trustee?

A bankruptcy trustee will have certain duties that they need to perform under the Bankruptcy and Insolvency Act.

A trustee is licensed by the Office of the Superintendent of Bankruptcy to ensure the correct procedure is carried out for consumer proposal and bankruptcy orders.

Some of their responsibilities include:

Debt performance assessment

This is where a trustee meets with you to assess your personal situation and make recommendations based on the information you provide.

Complete the necessary paperwork

Your trustee will complete and file all of the paperwork required by the Office of the Superintendent of Bankruptcy.

These include an Assessment Certificate, Statement of Affairs, Monthly Statement of Income and Expense and Bankruptcy Assignment.

Deal with creditors on your behalf

Dealing with creditors can be stressful.

Once you’ve filed for bankruptcy, creditors must cease contact and only deal with your trustee.

Your trustee will make contact on your behalf to ensure all claims are handled appropriately.


The trustee will collect payments and make sure you fulfill all of the duties outlined in the Act.

Issue your discharge

Once the bankruptcy process is complete, your trustee will file for your discharge, before issuing with a Certificate of Discharge.

Once you have this certificate, removing your obligation to repay the debts included in your bankruptcy.

There is a lot of information to take in regarding bankruptcy, and it’s important that you understand what’s involved before you decide to file for bankruptcy.

Meeting with a Licensed Insolvency Trustee is the first step towards resolving your debt situation.

By meeting with a licensed expert, you can get a clearer outline of all of the options to make sure you choose the right one for your needs.

Dealing with debt is difficult, but there are solutions in place to help you deal with it.

Whatever your situation, get in touch with our teams today and we’ll happily provide you with a free consultation to talk through your circumstances and help you get on the road to debt-free.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

Gordon Sands

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