How to claim bankruptcies in Ontario?

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Starting the bankruptcy process in Ontario involves contacting a Licensed Insolvency Trustee for a financial check-up. If bankruptcy is right for you, you’ll file key documents to protect your assets and stop creditor harassment. Along the way, attend financial counseling, monitor income, and make payments if earning over a limit. Choose your trustee wisely since not all are trustworthy. Reach out with any questions!

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Bankruptcies Claim Ontario Question

How to claim bankruptcies in Ontario? I live in Ontario and want to know how to file for bankruptcy here. What are the steps?

From: Anonymous Question
Location: Hamilton, Ontario (ON)
Category: personal bankruptcy

Bankruptcies Claim Ontario Answer

To start the bankruptcy process in Ontario, you’ll want to get in touch with a Licensed Insolvency Trustee (LIT) for a free check-up on your finances. If you decide bankruptcy is the way to go, you’ll need to sort out and sign some key documents—think of them as the official paperwork that spells out your financial snapshot and hands over your assets to the trustee. Once that’s all sorted, your trustee will file these with the Office of the Superintendent of Bankruptcy. This filing is like a protective bubble—it keeps creditors from knocking at your door.

During the bankruptcy journey, you’ll be expected to tick off a few boxes: attend a couple of financial counseling sessions, keep tabs on your monthly earnings, and if you’re earning more than the set limit, fork over some payments. If it’s your first time filing and you don’t have surplus income, you’re usually off the hook in about nine months, freeing you from most of your debts. But remember, this route has a long-term effect on your credit score. Choose your trustee wisely because, just like any situation, not everyone is as trustworthy as they should be. If you’ve got questions, don’t hesitate to reach out via call, text, or chat.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

To file for bankruptcy in Ontario, follow these steps based on the Bankruptcy and Insolvency Act:

1. Determine your eligibility: You must be unable to pay your debts as they become due and owe at least $1,000.

2. Choose a Licensed Insolvency Trustee (LIT): They will guide you through the filing process and manage your bankruptcy case. The LIT must be licensed by the Office of the Superintendent of Bankruptcy (OSB).

3. Complete necessary paperwork: The LIT will help you prepare the required bankruptcy forms, including a Statement of Affairs, which discloses your assets and liabilities.

4. File your bankruptcy application: Submit your completed forms and supporting documents to your LIT, who will file them with the OSB.

5. Attend a meeting of creditors: This is scheduled by the LIT, where creditors can ask questions about your financial situation.

6. Comply with bankruptcy obligations: You must provide required documentation, attend credit counseling sessions, and make any necessary payments to your LIT.

Refer to the Bankruptcy and Insolvency Act, RSC 1985, c. B-3, especially sections regarding filing procedures and the role of a LIT. Additional details can be found in the regulations under this act.

From: OSB Helper

Related Questions to Claiming Bankruptcies In Ontario

Here are the top 5 most frequently asked questions related to claiming bankruptcies in Ontario, along with a brief answer for each:

1. How to file bankruptcy court documents online in Ontario?

You can submit most court documents through the Bankruptcy Submissions Online portal, but you must have an online My Ontario account, completed documents in PDF or Word format, and the necessary payment for filing fees[1].

2. What is the difference between a Consumer Proposal and personal bankruptcy in Ontario?

A Consumer Proposal involves negotiating a repayment plan with creditors, while personal bankruptcy involves surrendering assets to a trustee to distribute among creditors; both are managed by a Licensed Insolvency Trustee[3].

3. How to find a Licensed Insolvency Trustee in Ontario?

You can find a Licensed Insolvency Trustee through services like the Law Society of Ontario’s referral service, Pro Bono Ontario, or by contacting firms such as D. & A. MacLeod Company Ltd. or Scott, Pichelli & Easter Ltd.[1][2][5].

4. What are the fees associated with filing for bankruptcy in Ontario?

Filing fees are required and listed in O. Reg. 293/92; some fees cannot be waived, but you can request a fee waiver certificate if you cannot afford to pay[1].

5. How do creditors recover money owed in a bankruptcy in Ontario?

Creditors must complete and submit a Proof of Claim to the Trustee, including contact information, the amount owed, the basis of the claim, and any supporting documents; the Trustee determines if the claim is allowed[4].

If you have a question about debt see our debt questions or ask your own debt related question.

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