When an individual files an Ontario bankruptcy he is making a move that will relieve him of a considerable mental burden that has no doubt dragged at his spirit for an uncomfortable stretch. But he’s also signing himself up to honour certain obligations that constitute his side of the bargain.
Personal bankruptcy is governed by the Bankruptcy and Insolvency Act for all provinces in Canada, including Ontario. Part of the rules of bankruptcy include the requirement to perform certain duties in order to receive a bankruptcy discharge. Once having filed for bankruptcy, the debtor must:
- surrender all credit cards to the trustee.
- surrender to his trustee all his non-exempt assets. Not all assets are seized in a bankruptcy. Your Ontario bankruptcy trustee will explain what assets you keep and what asset you lose at your initial consultation.
- pay all payments including surplus income payments, if applicable.
- attend a creditors’ meeting, if one is called (this only happens if the Superintendent of Bankruptcy or creditors whose aggregate claims against him total at least 25 percent of proven claims ask for one) or examination under oath with the Office of the Superintendent of Bankruptcy, if it requests such a meeting.
- supply the bankruptcy trustee with information to help file necessary tax returns.
- report household income and living expenses and any change in family situation to the trustee.
- take two credit counselling sessions. The first must be held between 10 and 60 days after the bankruptcy start date; the second must be held within the first 210 days.
- keep the trustee informed at all times of his address and contact information until discharge.
It’s important that all bankrupt individuals cooperate with their trustee and complete these duties in a timely manner throughout the course of their bankruptcy process. This allows their bankruptcy to be discharged as soon as eligible and so you can get you fresh start debt-free.
If you have any questions about your duties and responsibilities, all of this will be explained when meeting with your Ontario Bankruptcy Trustee.