Bankruptcy Canada - What is Bankruptcy?

Briefly, the steps to declare bankruptcy are:

• Choose a Trustee in Canada such as Alger & Associates Inc.
  
  

• The Trustee will help you prepare a Statement of Affairs which lists all of your assets, creditors, income, expenses, and other pertinent information.
  
  

• After you file bankruptcy, most creditors are no longer able to pursue you for collection of their accounts.
  
  

• You may be need to attend a bankruptcy interview with the Official Receiver who is a government official.
  
  

• You will be required to attend two financial counselling sessions.
  
  

• Any of your assets that you are not allowed to keep (see Some Exempt Assets), will be sold with the help of the Trustee.
  
  

• You will report your monthly income and expenses to the Bankruptcy Trustee. You may also have to pay some money to the Trustee each month depending upon how much you earn, the size of your family, and your other financial circumstances.
  
  

• If this is your first bankruptcy and there are no objections, you will be discharged from bankruptcy in 9 months. At this point you will have no further obligations for the debts covered in your bankruptcy.