What to Bring When You Are Going to See Someone About Bankruptcy?

See Someone About Bankruptcy

If your financial situation is becoming unbearable and you have overwhelming and mounting debts –debts which you are unable to repay despite your best efforts—you should consider consulting with a bankruptcy trustee. In some cases, you will be able to repair your financial situation without having to file for personal bankruptcy.

Alternatives to bankruptcy

A bankruptcy trustee will explain the options available for you. Options include:

  • Debt consolidation
  • Debt management plan
  • Consumer proposal

Filing for personal bankruptcy is the last resort. Filing for personal bankruptcy will eliminate most, or all, of your debts, but your credit rating will be negatively affected. It is much harder to be accepted for a loan after a bankruptcy until you can re-establish your credit reputation.

What You Need to Bring When Consulting With Your Bankruptcy Trustee

For your bankruptcy trustee to determine if filing for personal bankruptcy is the best option for you, you will need to explain your financial situation in detail. You will also have to explain what measures you have already taken to pay your bills and cut down on your debt load. Your bankruptcy trustee will need to know your personal details, including date of birth. The trustee also needs to know your income and your expenses, and your assets and your debts. You must disclose all your assets, including property. You must also inform the bankruptcy trustee if you have sold any property in the past few years. You must give the trustee a list of your creditors and approximately how much you owe them.

Bankruptcy: The Steps

If you and your bankruptcy trustee decide that filing for personal bankruptcy is the best solution, your trustee will assist you in completing the necessary forms, and will fill the documents with the Office of the Superintendent of Bankruptcy. Once you are formally declared bankrupt, your trustee will deal directly with your creditors. Your trustee will notify them about your bankruptcy. The process assigns all your assets to your trustee, including your house, RRSPs, and investments. Your trustee will review your assets and deal with any that are not protected under bankruptcy law. The money recovered from you assets will be distributed to your creditors as outlined by government law. The bankruptcy process requires you to attend financial counselling sessions. You must attend at least 2 sessions, which will help you make a financial plan to avoid further debt, and to restore your credit rating. Source used in researching this article include Government of Canada: You Owe Money – Considering Bankruptcy.

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