How to file BK?

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Thinking about filing bankruptcy in Canada? Start by chatting with a Licensed Insolvency Trustee (LIT) for advice. Gather your financial details to help them assess your situation. If bankruptcy is the best route, you’ll need to prepare some paperwork, which they’ll file for you, shielding you from creditors. Complete the required steps, and you’ll be debt-free except for obligations like child support. Reach out via phone, text, or live chat if you have any questions. Not all trustees can be trusted.

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Filing Bk Question

How to file BK? I’ve heard about filing for bankruptcy but don’t know how to begin. Can you explain the process?

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

Filing Bk Answer

Thinking about filing for bankruptcy in Canada? Start by reaching out to a Licensed Insolvency Trustee for a chat about where you stand financially. You’ll want to gather up all the good stuff like income and bank statements, loan details, and any payment records. This way, your LIT can take stock of everything and guide you on the best path forward. If bankruptcy turns out to be your best buddy, you’ll need to sort out some paperwork — namely the Assignment and Statement of Affairs — outlining your financial scene in detail. Once you’ve got that squared away, your trusty LIT will handle filing everything with the Office of the Superintendent of Bankruptcy (OSB) — phew! This dead-easy step ensures you’re covered against creditors and officially stamps your bankruptcy status.

Post-filing, your LIT will dispatch a note to your creditors within five days to let them know what’s what. Expect a get-together with them a few weeks in. Your trustee takes the driver’s seat from here, ensuring non-exempt assets get prepped for action and all those pesky bankruptcy rules are followed to the letter. There’s also a couple of debt counseling sessions to tick off. Once your obligations are fulfilled, bingo! You get a Certificate of Discharge that waives most debts, although this isn’t a free pass for things like child support or alimony.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

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

1. Consult with a Licensed Insolvency Trustee: An LIT will assess your financial situation and explain your options. They are the only professionals authorized to file for bankruptcy on your behalf (Bankruptcy and Insolvency Act, Section 49).

2. Gather Necessary Information: Collect all financial documents, including a list of assets, debts, income, and expenses. This will be essential for your trustee to prepare the bankruptcy application (Regulations C.R.C., c. 369, Section 19).

3. Prepare the Bankruptcy Application: Your LIT will prepare the bankruptcy application and other required documents, which include a Statement of Financial Affairs. This statement outlines your financial situation (Bankruptcy and Insolvency Act, Section 66.1).

4. File the Application: Your LIT will file the bankruptcy application with the Office of the Superintendent of Bankruptcy (OSB). Upon acceptance, you will receive a bankruptcy number (Bankruptcy and Insolvency Act, Sections 66.1 and 70).

5. Attend the Required Meetings: You may be required to attend a meeting with your creditors, where they can ask questions regarding your financial situation (Regulations SOR/2007-256, Section 8).

6. Complete Necessary Duties: You must comply with any conditions set by the OSB, which might include attending a financial counseling session and making payments based on your income (Bankruptcy and Insolvency Act, Section 68).

7. Discharge from Bankruptcy: Once your obligations are fulfilled, you or your LIT will apply for a discharge, at which point your debts are forgiven, and you can start fresh (Bankruptcy and Insolvency Act, Section 173).

It is important to ensure that you follow all guidelines and comply with the requirements set out by the OSB and your LIT throughout the process.

From: OSB Helper

Related Questions to Bk Filing

Here are the top 5 most frequently asked questions related to filing for personal bankruptcy in Canada, presented in a clear and numbered format:

1. What are the requirements to file for personal bankruptcy?

You must have a Canadian connection, owe at least $1,000, be insolvent, or have insufficient income to meet your debt obligations[2][5].

2. Will I lose everything if I declare bankruptcy?

No, certain assets such as your primary motor vehicle (up to a certain value), household furniture, personal items, and necessary clothing are typically exempt from seizure[4].

3. Will all my debts be settled if I declare bankruptcy?

Most unsecured debts, such as credit card debt and personal loans, can be discharged, but debts like student loans and child/spousal support are not dischargeable[4].

4. How long does personal bankruptcy last?

The duration of bankruptcy typically ranges from 9 to 21 months, depending on whether it is your first bankruptcy and other factors[1][4].

5. Will I be able to borrow money again after declaring bankruptcy?

Yes, but it may be more challenging and expensive due to the impact on your credit rating, which can last for several years after the bankruptcy is discharged[1][4].

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

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