How do I file for Personal Bankruptcy?
The first step required to file for personal bankruptcy Edmonton or anywhere in Canada is to contact a trustee. Together with the trustee you must review a number of options to ensure that you are aware what options exist and how the different options will affect you.
If you decided that personal bankruptcy is the best way to resolve your financial situation, the Trustee will give you an application form that must be filled out and returned to the trustee’s office. This application will include a list of your assets, creditors, income, expenses, and any other pertinent information that you may have discussed with your trustee. While you are working on the application if you run into an area where you are unsure what type of information is necessary or simply unsure if you have provided sufficient detail, check with your trustee. Your trustee is there to help you understand what is necessary and to help ensure the process runs as smoothly as possible.
Once all this information is assembled, your trustee will need a few days to review your file and prepare the necessary legal documents that will officially place you into bankruptcy. Once these documents are signed and filed with the Superintendent of Bankruptcy your bankruptcy will be in place.
One aspect of a bankruptcy that is very important is the stay of proceedings. The stay of proceedings legal protection from your unsecured creditors that part of the bankruptcy process and something that is automatically in place once the bankruptcy documents are field.
So if you are currently being harassed, garnisheed, or sued by any of your creditors this stay of proceedings prevents any of your creditors from continuing with this action.
After all the legal paperwork has been filed and you are experiencing the relief from your creditors that comes with the filing of a bankruptcy, it is important that you understand your duties and obligations. Remember, bankruptcy is a process -- it is not the filing of a bankruptcy that releases you from your debts, it is the completion of a bankruptcy. We always remind people of the 5 key things they must work on to complete the bankruptcy. While these are pretty simple, you need to be aware of them and complete them consistently and promptly. They are as follows:
- Keep receipts for all your monthly expenses and submit your Monthly Income and Expense Statements to your trustee's office;
- Attend your 2 counselling sessions;
- Make your monthly payments as set by the trustee or, if applicable, the Superintendent Surplus Obligation Guideline;
- Submit your taxes to your trustee for the year of bankruptcy;
- Attend any additional meetings that may become necessary.
Upon completion of these obligations you will be eligible for discharge. Remember, bankruptcy is a legal process and a process that you should take seriously. With that it is important that prior to filing a bankruptcy you discuss the above requirements with a licensed trustee, understand the requirements and are committed to fulfilling these responsibilities. If this is done you will find that the filing of bankruptcy is a straightforward process that typically follows a very predictable course.
Should you require have any questions or simply require greater detail about the filing of a bankruptcy, the duties required in bankruptcy or any of the other options to deal with your financial situation you are best to contact an Edmonton bankruptcy trustee directly.
