If you are considering filing for bankruptcy, you may have heard about bankruptcy resulting in a creditors’ meeting and now you’re wondering, will I have to attend one of these sessions?
If you’re realizable assets in a bankruptcy are less than $15,000, your bankruptcy is considered to be a summary administration. In a summary administration bankruptcy, a creditor`s meeting is not automatically required. This is the case in almost all personal bankruptcies that take place in Ontario.
There may be instances where one may be held however even in a summary bankruptcy administration. A meeting of creditors is held if requested by the Official Receiver, or creditors with an aggregate of at least 25% of the proven claims.
If a meeting is called, either at the request of the creditors, or because of the value and complexity of the bankrupt’s situation, it is usually to deal with a very specific concern or issue. For example, the bankrupt may have an ownership interest in a piece of real property that has legal constraints, creditors may have questions about whether or not the bankrupt disclosed everything he should have or may have concerns about fraudulent transactions prior to bankruptcy. If
If a meeting of creditors is called, you must attend this meeting. It is important to know that if you do not attend the meeting, it will affect getting discharge from bankruptcy.
Sometimes the idea of attending a meeting can make a person worried, especially not knowing what happens at this type of meeting. The main purpose of the first meeting of creditors is to review a bankrupt`s situation, ask questions relating to the debts and assets of the bankrupt, including asking questions about their financial dealings that lead to their trouble.
While your trustee will attend and can give you information about the meeting and what to expect, in the strict legal sense they do not represent you. If you are concerned about any specific circumstances, you may want to talk to separate legal counsel.
The meeting will confirm the appointment of the trustee, appoint up to five inspectors to supervise the administration of the estate and allows creditors to give directions to the trustee on how to deal with issues that may arise in the file including the disposal of assets.
Again, it is important to note that very few personal bankruptcies in Ontario result in a creditors meeting being called. However if one does, talk to your trustee about what you can expect.