How to Go Bankrupt in Ontario
Bankruptcy offers Ontario residents the opportunity to remove crushing debt from their lives and pay off most creditors in an orderly manner. The Bankruptcy and Insolvency Act (BIA) covers all citizens of Canada. Within the BIA, Ontario has its own rules governing which assets are protected in a bankruptcy proceeding. The process is complicated and time consuming, but will give you a chance to move on with your life. Remember, however, a bankruptcy will stay on your credit history for six years and may keep you from obtaining a loan to buy a car or house.
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Instructions
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Find a Way Out of Debt
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Visit a bankruptcy counselor chosen by the Office of the Superintendent of Bankruptcy for Ontario province. He will try to find you an alternative to bankruptcy, including talking with your creditors to work out an arrangement to pay off your debts. He will also require you to make payments to your creditors during the bankruptcy process.
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Choose bankruptcy if your creditors won't compromise on your debt repayment. Bankruptcy can be voluntary or involuntary. You have more control of the process if you initiate the process yourself. Once you declare bankruptcy, court actions brought by your creditors stop. Bankruptcy won't take all your possessions. In Ontario, your house, car, tools of your trade and retirement funds are usually excluded from bankruptcy.
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Bring a record of your assets to the trustee in bankruptcy who will begin distributing them to your creditors. You must cooperate with him to find and recover your assets and arrange meetings with your creditors. You must inform the trustee about any changes in your financial situation during the bankruptcy process.
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Attend mandatory financial counseling twice. The first session comes within two months of filing; the second is several months later. You must attend both sessions. These sessions will help you avoid another bankruptcy.
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Wait nine months if this is your first bankruptcy, three months to a year if it's not. During this nine-month period, your creditors have the opportunity to review the arrangements made by the trustee. At the end of nine months, you can obtain a certificate of discharge from the court and your debts are gone. The court may impose conditions on the discharge, such as further payments to a certain creditor. If your creditors believe the facts stated in the bankruptcy are incorrect, you may have to defend yourself against their charges.
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References
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