There are various duties required of you when you file Bankruptcy. If you do not complete your duties, the Licensed Insolvency Trustee is required to obtain a discharge from administering your Bankruptcy within a certain timeframe, leaving you in Bankruptcy. This will put you back into the same situation as before filing for Bankruptcy. All your unsecured creditors can once again pursue you directly to pay the full amount of their debt. You may...

The federal government provides guidelines to all Licensed Insolvency Trustees to help them determine if an individual or family has surplus income obligations. Your threshold for surplus income is calculated based on the number of dependents in your household and your net family income. Net family income refers to how much you earn after deducting income taxes, payroll deductions, essential medical expenses, alimony, child support, and childcare...

When you file for Bankruptcy, unsecured creditors will be allowed to file a claim with the LIT for the amount they are owed to receive their share of any funds distributed in your Bankruptcy. Your creditors will deal directly with the Licensed Insolvency Trustee and are required by law to stop contacting you regarding collections immediately. If a creditor persists in contacting you, you should notify the Licensed Insolvency Trustee immediately....

If a debt included in your Bankruptcy has been co-signed or guaranteed, the co-signer/guarantor will be responsible for making the payments in full. Filing a Bankruptcy only gets rid of your legal obligation to pay the debt.

Once your Bankruptcy is filed, you will typically make monthly payments to the Licensed Insolvency Trustee (LIT), as agreed upon by you and the LIT. The LIT will distribute any funds received through the Bankruptcy to unsecured creditors at the end of the Bankruptcy as required under the Bankruptcy and Insolvency Act. Click here to learn more about how those payments may be determined.

Once you file for Bankruptcy, the Licensed Insolvency Trustee must notify all your creditors. The Canada Revenue Agency, credit reporting agencies and the federal government's Office of the Superintendent of Bankruptcy will also be informed. A Bankruptcy is a matter of public record with the federal government's Office of the Superintendent of Bankruptcy, and it will appear on your credit report. Your employer is not usually notified unless the...

The Licensed Insolvency Trustee must file any outstanding income tax returns if they remain unfiled at the date of Bankruptcy, as well as a pre-Bankruptcy income tax return for the period from January 1 to the date of your Bankruptcy. The Licensed Insolvency Trustee will retain any refunds arising from these income tax returns. If a balance is owed on these income tax returns, the amount will be included in your Bankruptcy. The Licensed Insolvency...

When you file for Bankruptcy, you will need to turn over all your credit cards to your Licensed Insolvency Trustee. You will be unable to obtain new credit cards until after your discharge from Bankruptcy. However, you may be able to obtain either a prepaid or a secured credit card for use during your Bankruptcy. Only a secured credit card will help you rebuild your credit rating.

A secured credit card is ideal for people with low or no credit. To obtain one, you must provide a deposit to the credit card issuer that serves as collateral. For example, if you deposit $1,000, your credit limit you can charge will also be $1,000. From there, a secured credit card works like a regular credit card, with required minimum monthly payments. You will be able to make purchases online and in-store, plus you’ll be able to use the...

The Bankruptcy and Insolvency Act requires that all Bankruptcies be filed by a Licensed Insolvency Trustee.