Call a trustee at 1-877-879-4770 and set up a FREE confidential consultation. This meeting takes about an hour.
Take the time to think over and digest the information you received at the Trustee’s Office. If you decide to go ahead, phone the trustee’s office and set up a time to go back to the office to sign the documents. This meeting should take about 30 – 45 minutes.
The trustee will mail out the bankruptcy documents to your creditors within 5 business days of your signing the documents. Creditors cannot take any action against you once you file. If any collectors or creditors phone you for money tell them you filed bankruptcy and refer them to your trustee.
Each month you will send in your Statement of Income & Expenses, pay stubs and the required monthly payment to your trustee. The trustee will have provided you with the necessary forms. You must do this as part of your duties so that your Trustee can recommend your discharge.
Two financial counselling sessions are held at the trustee’s office. The first counselling session is held within the 1st two months; the second one is held at the 7th month. You must take the two financial counselling sessions in order to be eligible for your discharge from bankruptcy.
At the eighth month, following your signing the bankruptcy documents, your trustee must report on how you conducted yourself before and during the bankruptcy. If you have conducted yourself properly and performed all your duties your trustee will recommend an absolute discharge from bankruptcy. The majority of bankrupts are discharged in nine months.
Your Trustee will send you your Certificate of Discharge which will certify that all your eligible debts have been erased. The credit bureau will be notified and in 6 years the record of the bankruptcy will be removed from your credit report. If any former creditor tries to collect from you or says you still owe them money showing them a copy of this document will prove that you do not owe them any money.
Meeting with the trustee.
Before you meet with the trustee, he or she will likely ask you to fill out a form setting out your pertinent financial information. This makes the meeting more productive.
The meeting lasts approximately an hour. The trustee or an administrator will review the debtor’s financial information, explain any options, explain how bankruptcy or a proposal works, and answer any questions. This meeting is free. The meeting is non-judgemental and pressure free.
If there is an emergency such as a garnishee order in place that will take a portion of a person’s pay cheque, the trustee can get a bankruptcy or an intention to file a proposal in place in a matter of a few hours. The bankruptcy or intention to file a proposal will stop the wage garnishee.
What happens next?
The debtor usually thinks things over a day or two before making up his mind. Once he decides to go bankrupt he will phone the trustee office and tell them he wishes to proceed.
It only takes a day or two for the trustee to prepare the documents.
The debtor will go to the trustee’s office and sign the documents.
The trustee will immediately file the documents with the office of the Superintendent of Bankruptcy.
The debtor is bankrupt when the documents are filed.
Stay of proceedings.
There are a number of immediate advantages for a person assigning himself or herself into bankruptcy because of the Stay of Proceedings that goes into effect immediately upon the bankruptcy being filed.
The Stay of Proceedings protects the person filing bankruptcy as follows:
Unsecured creditors are not allowed to take any collection action.