What is the Process? - click for video

If it is determined that a Consolidation Loan is not possible, and an Informal Arrangement or Proposal cannot be made, the most responsible action to take is a Bankruptcy.

The first step is the initial Assessment which determined the need for bankruptcy. This first step is critical in determining that this is the only viable alternative. The moment the papers are signed, your are immediately relieved from having to deal directly with your creditors. Every phone call or correspondence is referred to our office. No one can sue you or garnish your wages.

If this is your first Bankruptcy, the entire process takes nine months. During this time a number of “Duties” are performed by the bankrupt and at the end of this process you are “Discharged” with your debts cancelled.

These “Duties” include:

• Telling the trustee (Killen Landau & Associates Ltd.) what your assets are and how much money you owe and to whom
• Reporting every asset you disposed of in the past year
• Disclosing everything worth $500 or more that you gave away in the past 5 years if you were insolvent at the time you gave it away
• Providing the trustee with all required books, records or documents
• Giving the trustee all your credit cards, even if there is nothing owing to them
• Placing all your assets in the control of the trustee Making any “Surplus Income Payments” during the bankruptcy
• Attending all meetings and examinations as required and answering all questions truthfully, including 2 counselling sessions provided by the trustee
• Submitting your T-4’s or income and expense statements so all your tax returns can be prepared and submitted by the trustee
• Co-operating with the trustee and communicating any changes as it relates to home address, employment, income and expenses.
• Here is a typical timeline outlining the entire process.

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