What Are My Duties In Bankruptcy?

Responsibilities & Duties As a Bankrupt

The process of bankruptcy is governed by various laws and regulations, one of them being the **Bankruptcy and Insolvency Act **. Filing for bankruptcy means taking on a set of responsibilities to ensure a fair and orderly resolution of the financial situation. This article will shed light on What Are My Duties In Bankruptcy and guide you through the process.

Chapter 1: The Disclosure Obligations

1.1 Asset Disclosure

One of the primary duties of a bankrupt person is to provide a comprehensive report of all assets. This includes:

 

  • Any assets held or managed at the time of filing for bankruptcy.
  • Potential assets that could be acquired before the discharge of bankruptcy.
  • Assets that have been used as collateral for any loans.

 

1.2 Debt Disclosure

In addition to asset disclosure, you are required to disclose all debts. This includes:

 

Debts owed to or from any parties.

Debts associated with related parties.

 

1.3 Previous Transactions

Furthermore, you are required to reveal any financial transactions that took place within five years preceding the bankruptcy. This includes:

 

  • Sale, disposal, transfer, or pledging of assets.
  • Payments made to any creditors, excluding regular monthly payments.

 

Chapter 2: Working with the Trustee

Bankruptcy proceedings involve a close relationship between the bankrupt party and the Trustee.

2.1 Providing Records

It is the bankrupt party’s responsibility to provide all necessary books and records to the Trustee. These should include information related to assets, property, and any relevant transactions.

2.2 Attending Meetings

As part of the bankruptcy process, you are expected to attend various meetings. These may include:

 

  • Meetings with creditors.
  • Meetings requested by the Trustee.
  • Examinations under oath.
  • Mediation, if required.

 

2.3 Assisting the Trustee

Your role in the bankruptcy process also involves assisting the Trustee in various tasks. These include:

 

  • Creating an inventory of assets.
  • Aiding in the realization of assets.
  • Assisting with the review and verification of claims.
  • Keeping the Trustee informed of any changes in contact information for 12 months after discharge.
  • Not obtaining credit of more than $1,000 without disclosing to the other party about your bankruptcy status.

 

Chapter 3: The Role of a Licensed Insolvency Trustee

A Licensed Insolvency Trustee plays a critical role in the bankruptcy process. With experience and understanding of the personal impacts of financial stress, they offer:

 

  • A personalized approach to handling bankruptcy cases.
  • Prompt responses and resolution of issues.
  • Guidance on debt solution options, such as filing a consumer proposal or personal bankruptcy.
  • Assistance in dealing with creditors once a consumer proposal or personal bankruptcy is filed.

 

Chapter 4: Getting Started with the Bankruptcy Process

Embarking on the bankruptcy process can be a daunting task. Free consultations are offered by professionals to review your financial situation and discuss practical debt resolution options. You can Contact us to discuss your situation over the phone, a video chat, or in-person.

Chapter 5: Conclusion

Understanding What Are My Duties In Bankruptcy is crucial in navigating the bankruptcy process. By being aware of your responsibilities and working closely with a Licensed Insolvency Trustee, you can successfully get through this challenging time.

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