Bankruptcy Duties in Brantford

by Howard Hayes on September 18, 2013

If you file a bankruptcy in Brantford, what are the required bankruptcy duties?

When filing a bankruptcy there’s generally five things you are agreeing to do during the time that you remain bankrupt.  Bankruptcy is not simply a way of “getting rid of debt’, it’s a legal process that is monitored by the bankruptcy trustee, the creditors, the office of the superintendent of bankruptcy and the bankruptcy court system.

It’s rare for the office of the superintendent of bankruptcy and the courts to intervene in a bankruptcy proceeding because before you file the bankruptcy, the trustee will explain all that you’re required to do and as long you undertake and perform the duties there’s normally no reason for anyone else to be involved other than you, the creditors and the trustee.

So what am I responsible for during a bankruptcy?

  1. Be Honest – When meeting with your trustee, be honest and open about your situation.  Make sure you inform your trustee as best you can about all your assets, debts, monthly income and expenses as well as discussing any assets you might have sold, transferred or had repossessed recently.   The better the trustee understands your situation, the better the trustee can guide you through the process.  Don’t be afraid to ask questions either; if there’s something you don’t fully understand, ask the trustee to explain in more detail.
  2. Report your Household Income – Each month, you’ll have to prove your income to the trustee. the trustee will provide you with a form you have to fill out each month that shows your household income and expenses.  You have to prove the income for the month by providing a copy of your pay stubs or a bank statement showing your earnings.  Receipts for regular expenses like groceries are not normally required.
  3. Make your required payments – The cost of a bankruptcy can vary depending on your income. Essentially the government has a rule which in it’s easiest form to understands means “the more you make, the more you have to pay”.  This rule is to establish some kind of fairness in the bankruptcy process by ensuring that a person that makes $2500 per month pays more than a person that makes $2000 per month.  More details are discussed in the video below:
  4. Attend two counselling sessions – You’re required to attend two mandatory counselling sessions during a bankruptcy.  These are provided to you at no charge, they last approximately 1 hour each and are private sessions with a qualified credit counsellor (you’re not having to walk into a room full of strangers).  The counselling is provided to provide you with useful advice on budgeting, money management and can help you formulate a plan for the future such as credit rebuilding.
  5. Co-operate with the filing of your Tax Returns – The trustee is required to file your tax return for the year in which you file the bankruptcy, so you’ll need to provide the trustee with the necessary information required to file the returns required.  The trustee will explain in more detail to you exactly what information they might need such a t-slips/pay-stubs etc.

As long as you complete these duties it is likely you’ll be on course to receive an automatic discharge from your bankruptcy.  You may have other duties during a bankruptcy that could be specific to your situation, but these are the main ones that are required by every bankrupt in Brantford.

For more information on these duties or to discuss the possibility of filing a bankruptcy further, feel free to call our office and speak to myself or one of my colleagues who’ll also be happy to help. You can reach us by email or by phone at (519) 770 4440.

 

About

Howard has worked in our Brantford office for many years helping Brantford residents find solutions for debt problems. As a licensed trustee in bankruptcy Howard is able to explain all your options and find a solution that works for you.

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