In an uncomplicated first bankruptcy, as long as you fulfill certain obligations, your bankruptcy will be automatically discharged in nine months, and you’ll be released from your debts. Any failure or delay in fulfilling those obligations can delay or prevent your discharge. So, what are those obligations?
As per the Bankruptcy and Insolvency Act, bankrupts in Ontario are obliged to:
– Disclose to your Credit counsellor or trustee all property and deliver it to the trustee if required
– Relinquish to the trustee all credit cards for cancellation
– Deliver all titles, policies, tax records etc. that relate to your financial affairs
– Disclose under oath as required the conduct and causes that led to bankruptcy
– Deliver within five days of filing bankruptcy a statement of your affairs including names and addresses of all creditors, as well as other pertinent details
– Assist the trustee in inventorying your assets as required
– Disclose all property of which you’ve disposed in the year prior to filing
– Disclose any gifts or settlement without adequate compensation made in the five years prior to filing
– Attend the first meeting with your creditors and subsequent meetings as required
– Submit to examinations regarding property and financial affairs under oath as required
– Aide to the best of your ability in the distribution of proceeds from asset sales
– Execute powers of attorney, deeds, conveyances etc. as required
– Double-check claims filed if required by the trustee and correct any errors
– Inform the trustee of any changes to your financial situation
– Generally do whatever is reasonably required with regard to your property and distribution of any proceeds
– Keep the trustee advised of your address until discharged
We’ve paraphrased these duties for the sake of brevity, and they are intended just for your general knowledge. If you are considering bankruptcy, you should discuss the particulars of your situation with your credit counsellor or bankruptcy trustee.
If your debts are greater than your ability to pay them, it’s time to talk to a professional. Call us today
