There is a great deal of confusion about the filing of bankruptcy in Canada vs. the United States. This article will focus on the filing of a bankruptcy in Canada. The bankruptcy process starts with initially consulting with a licensed Trustee. You need to meet with a trustee who is licensed by the federal government and practices in your local area. So the first step is to contact a local trustee and set up a time for them to evaluate where you are at financially. To be able to adequately explain all your options and give any quality advice this trustee will begin by reviewing the details of your financial situation. To do this they will sit down with you in person and talk about the fundamental areas of our personal finances (i.e. assets, income, living expenses and debts). To assist with this it is important that you come prepared to this meeting with a list of this information. Now while preparing this information remember it is not essential that this information is exact, the trustee doesn’t need to know the amounts down to the penny, but they will need to know roughly where you sit in general. The reason this information is important is that the bankruptcy and how it will transpire is dependent on the specifics of your situation. So if the trustee is aware of what is happening in your life they will be in a better position to discuss what you can anticipate from the filing of a bankruptcy. In this consultation you will find that the trustee will discuss a number of things. This is both from a practical and a legal standpoint, so your trustee will do more than just review your situation, they will make sure you understand all aspects of the Canadian bankruptcy system, including what a discharge is, the duties and responsibilities that you will have as part of the bankruptcy, the specific impact on credit and some of the options to a bankruptcy. bankruptcy Las Vegas NV
One interesting thing is that a trustee is not just about bankruptcy. Often, as a trustee is conducting this review they will help you to determine that a bankruptcy is not going to be beneficial to your situation and perhaps there is a better way (i.e. consumer proposal). This typically occurs if you have higher income and/or substantial assets or some other unique aspect of your situation. This is part of the reason that a trustee is required to review things and explain not only about bankruptcy but all the options to bankruptcy as well. That way you are aware of what different choices are available and the ramifications of those different directions. This is a part of the process that most people find surprising; if you are not a good candidate for bankruptcy your trustee will tell you that. A trustee does more than simply file bankruptcy or suggest that people file for bankruptcy, a trustee is a licensed professional who’s duty it is to help you understand all the options that exist and make recommendations based on what is best for everyone. So if you are a better candidate of a consolidation loan, a debt management plan or a consumer proposal, your trustee will make sure you not only understand this, but will assist you in finding the help that you need.
The Canadian Bankruptcy Process -After having things reviewed by a licensed trustee and you determine that a bankruptcy is the best fit, you are then are able to proceed with the filing of the bankruptcy. In order to proceed with the filing the trustee will require more detail than you originally provided. At your initial meeting your trustee will have given you a number of different reference documents as well as an application form. This application form needs to be filled out and returned to your trustee’s office for processing. Within this application is all the required information your trustee needs to prepare the formal bankruptcy documents. From here your file must be processed, your trustee’s office will need a little time to take the information in the application form an turn it into the legal documents that will make the bankruptcy official. When your trustee is finished processing your application form they will schedule a time for you to sign these documents and formalize the bankruptcy. By signing these documents court protection will be automatically put in place. This “stay of proceedings” is protection that prevents your creditors from being able to chase you for the debt.