How to declare bankruptcies in Ontario?

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Thinking about bankruptcy in Ontario? Chat with a Licensed Insolvency Trustee for a financial check-up. Have your paperwork ready—bills, pay slips, tax returns. Your trustee will guide you through debt relief options like consumer proposals. If bankruptcy’s your route, expect some paperwork and protection from creditors. It’s lengthy—9 to 21 months—and public, affecting credit scores. Not all trustees can be trusted. Reach out via phone, text, or chat if you have any questions.

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Bankruptcies Ontario Question

How to declare bankruptcies in Ontario? I’m thinking about filing for bankruptcy in Ontario and need to know how to start the process.

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

Bankruptcies Ontario Answer

Thinking about declaring bankruptcy in Ontario? Start by having a chat with a Licensed Insolvency Trustee who can give you a free check-up on your finances. Before diving in, make sure you have all your paperwork handy—like bills, pay slips, and tax returns. Your LIT will talk you through debt relief options, like bankruptcy and Consumer Proposals, giving you the lowdown on both the good and the bad. If bankruptcy seems like the right fit, you’ll need to tackle some paperwork such as the Statement of Affairs and Assignment of Assets, which your trustee will then file with the Office of the Superintendent of Bankruptcy. This move shields you from creditors and even stops wage garnishments.

Now, while you’re in the bankruptcy phase, keep the wheels turning by sharing tax details, proof of income, and attending two required credit counseling sessions. Just keep in mind, the whole process can take anywhere from nine to 21 months, depending on your circumstances. And yeah, bankruptcy is a matter of public record and can really knock your credit score for the long haul. Not all trustees are created equal, so do your homework and pick a trustworthy one. If you’ve got questions, don’t be shy—reach out by phone, text, or chat.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

To declare bankruptcy in Ontario, follow these steps:

1. Contact a Licensed Insolvency Trustee (LIT): You must consult with an LIT who will guide you through the process. The LIT will assess your financial situation and discuss alternatives to bankruptcy.

2. Complete the Necessary Forms: The LIT will help you complete the required forms for filing. This includes the Statement of Affairs, which details your assets and liabilities.

3. File the Bankruptcy Application: Your LIT will file your bankruptcy application with the Office of the Superintendent of Bankruptcy (OSB). This encompasses sending the completed materials to the OSB along with their fees.

4. Attend the Credit Counselling Sessions: Post-filing, you are required to attend two credit counselling sessions. These sessions are designed to help you understand your financial situation and improve your money management skills.

5. Compliance with Bankruptcy Duties: During the bankruptcy process, you must comply with specific duties such as reporting income and attending required meetings with your trustee.

For specific references, consult:

• Bankruptcy and Insolvency Act, RSC 1985, c. B-3
• Regulations under the Act, such as C.R.C., c. 369 and SOR/2007-256 regarding the duties and processes related to bankruptcies.

Ensure that you familiarize yourself with these legislative documents to understand your rights and obligations during the bankruptcy process.

From: OSB Helper

Related Questions to How To Declare Bankruptcies In Ontario

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

1. How do I declare personal bankruptcy in Ontario?

You must contact a Licensed Insolvency Trustee for a free initial consultation, who will help you determine if bankruptcy is the right option and prepare the necessary paperwork[2][4].

2. What are the eligibility criteria for declaring bankruptcy in Ontario?

You must live, do business, or own property in Ontario and owe more than $1,000 in unsecured debt[2].

3. What are the steps involved in the bankruptcy process in Ontario?

The process involves meeting a Licensed Insolvency Trustee, signing the bankruptcy paperwork, and the trustee filing it with the Office of the Superintendent of Bankruptcy, followed by notifying your creditors and attending mandatory credit counselling sessions[2][4].

4. What happens to my creditors when I declare bankruptcy in Ontario?

An automatic stay of proceedings is triggered, which immediately suspends all collection actions, including collection calls, wage garnishment, repossession, and foreclosure[2][4].

5. What are my duties during the bankruptcy period in Ontario?

You must provide tax information, submit monthly pay stubs and proof of other income, attend credit counselling sessions, make required contributions to the bankruptcy estate, surrender non-exempt assets, and complete any other duties requested by the trustee[4].

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

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