How Do I File Bankruptcy

 The most common question we get from folks in financial difficulty is; “How do I file bankruptcy?” The process in Canada is relatively straight forward and will typically follow this model; A)You will make an appointment with the Trustee office to review your financial situation and receive what is known an as an “Assessment” of your situation. All the various alternatives, including bankruptcy, will be discussed. You will be made aware of all the implications of each choice and you should make sure you ask any questions that you have. (In some provinces this can be done over the telephone if you are a long distance from the Trustee office). B)Assuming that bankruptcy is the best alternative in the situation the Trustee will collect a information from you in order to prepare the necessary bankruptcy documents for you to sign. This may happen immediately (if, for example, you are being garnisheed) or you may come back again to sign the documents at a later date. C)There are a number of documents you will sign but the main documents include the Statement of Affairs, where you will list your assets, debts and other relevant information and a Summary of what you expect your income and expenses to be going forward. We will review each document with you, explain it and make any necessary changes. D)Once all the documents are signed we will file them with the Federal Government department that oversees bankruptcy in Canada – The Office of the Superintendent of Bankruptcy. As soon as this is filed what is called a “Stay of Proceedings” goes into effect which means that creditors can no longer phone you, sue you, garnishee you etc. (They don’t know this yet, of course, and the Trustee will send notices to all the creditors but it can take a few days before the notice hits the right person’s desk). Once you file bankruptcy you have a number of duties including filing monthly income and expense statements, making payments to the Trustee, providing tax information and going to counseling sessions, but it is not the purpose of this blog post to discuss those duties. Please feel free to contact your nearest office for a free initial consultation. Ian Schofield MNP Regina 306-790-7904