Steps in a Canadian Bankruptcy

What are the Steps to Go Bankrupt in Canada?

Steps in a Canadian Bankruptcy.

Step #1 of 7 in a Canadian Bankruptcy: Consultation with the Trustee.

Call a trustee and set up a FREE confidential consultation.


Steps in a Canadian Bankruptcy.

Step #2 of 7 in a Canadian Bankruptcy:

Take the time to think over what the trustee told you.

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.


Steps in a Canadian Bankruptcy

Step #3 of 7 in a Canadian Bankruptcy: 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.

CP-mailed-to-creditors

Step #4 of 7 in a Canadian Bankruptcy: 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 bankruptcy duties so that your Bankruptcy Trustee can recommend your discharge.

demo-banner

Step #5 of 7 in a Canadian Bankruptcy: 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.

hand-shake

Step #6 of 7 in a Canadian 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.

debt-free-following-a-bankruptcy

Steps in a Canadian Bankruptcy – The Last Step in a Bankruptcy: 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.


The bankruptcy process starts once your trustee files the bankruptcy paperwork with the Office of the Superintendent of Bankruptcy.

This process is done electronically.

Debtors dealing with lots of unsecured debts like credit cards, payday loans and CRA debt can take advantage of the bankruptcy laws.

Depending on your financial situation, declaring bankruptcy might not be the wisest choice.

In certain cases, alternatives to bankruptcy should be explored.

We can explore bankruptcy and all other debt relief options during your free initial consultation.

BANKRUPTCYCANADA

Get Your Free Consultation With a Licensed Debt Relief Expert Now!

Find out how you can quickly get out of debt by setting up a free consultation with us today.

Get out of Debt and have family bliss and happiness

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Legally Cut Your Debt By 80% And Stop Interest Charges

Stop Interest Charges Immediately
Unfreeze Bank Accounts
Stop Wage Garnishment
Stop Legal Actions

I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

Geoffrey,

Toronto