How To Claim Bankruptcy – Toronto
In Toronto and all of Ontario for that matter, only Licensed Bankruptcy Trustees can file bankruptcies.
A person who wishes to claim bankruptcy (a debtor), must work with a Bankruptcy Trustee.
Note: Often, it is possible to get out of serious debt without declaring bankruptcy. Only by discussing your situation with a bankruptcy Trustee, will you know for sure.
The following is a brief, general description of the normal bankruptcy process at David Sklar & Associates, Inc. For a more detailed description visit Filing for Personal Bankruptcy.
- The debtor calls David Sklar & Associates to set up a free appointment. During this call, the debtor will be advised of all the documentation they should bring to the meeting.
- The debtor meets with an Estate Administrator who reviews their financial situation in detail, and explains all of their debt repayment options. At the end of the meeting, the Trustee should be able to advise if a bankruptcy is the best course of action – or if additional information is needed.
- Both the debtor and the Trustee must agree that filing for bankruptcy is the debtor’s best choice and the debtor will have the duties of a bankrupt explained in detail.
- The Trustee will help the debtor fill in the required forms.
- The Trustee then files the forms with the Office of the Superintendent of Bankruptcy (OSB).
- Once the OSB assigns an Estate Number, the debtor is officially in bankruptcy and is now a bankrupt.
The Trustee will handle the notification of unsecured creditors and the sale/disbursement of non-exempt assets to creditors. As well, the Trustee looks after a number of issues including possible creditor meetings, hearings, reports to the court, and management of the bankruptcy.
Once the unsecured creditors have been notified of a bankruptcy, they must stop all collection calls, stop all legal actions, stop interest charges, and remove any garnishees.
Normally, for a first-time bankrupt, with no surplus income, the bankruptcy period will last 9 months. During those 9 months, the bankrupt will have to hand in monthly budgets to the Trustee, attend credit counselling sessions, honour all the terms of their bankruptcy, and pay a set amount of monthly Trustee fees.