Our Personal Bankruptcy Process
Timely, Personal, and Affordable Professional Services
The bankruptcy process is a legal process. It is described in a federal statute called the Bankruptcy and Insolvency Act (the BIA). Its purpose is to give Canadians in significant financial distress a legal, affordable and timely way to get out of debt and to have a fresh financial start. The only professionals authorized to assist you are federally Licensed Insolvency Trustees. Collins Barrow Brown Inc. is a Licensed Insolvency Trustee (LIT).
Prior to going into bankruptcy, you will certainly want to fully understand your finances, the creditor’s rights, your rights and options, and that bankruptcy is indeed the most appropriate solution for you.
Once we have carefully reviewed and discussed your assets, liabilities, income and expenses, your personal circumstances, and your hopes and plans for the future, we will summarize your options to resolve and settle your debts. We will also recommend a course of action to you, including, when appropriate, declaring bankruptcy.
If you wish to proceed with bankruptcy, we will guide you through the process. The bankruptcy process can be briefly summarized, as follows:
- We will provide you with a list of documents we are required to gather, which will provide us with proof of the particulars of your assets, liabilities, income and expenses.
- Under the direction of a LIT, a team member will review your documentation and prepare a draft of the documents that must be signed. You may receive calls or emails in order to clarify questions we have. The LIT will review and approve these documents.
- Once the documents have been finalized, we will promptly contact you to arrange a mutually convenient time to meet to review them. Once all of your questions and concerns have been addressed, you will be asked to sign the documents.
- We will then register the bankruptcy with the federal government department that oversees LITs and the bankruptcy process.
- Immediately upon receipt of the registration of the bankruptcy from the federal government, we take the necessary steps to stop creditor collection actions, such as collection lawsuits, wage garnishments and bank account seizures. You will have peace of mind and, once again, your entire pay to spend on your personal and family necessities.
- Upon the registration of the bankruptcy, interest and penalties on unsecured debts, with a few exceptions, will also stop accruing. You will have one affordable monthly payment to us as Trustee.
- As required by the BIA, we will promptly inform the creditors of your having declared bankruptcy. Each creditor receives a summary of your assets, liabilities, budget and a statutory notice. Collection calls will begin to stop. If creditors continue to call, you may direct them to us and we will instruct them to immediately cease all collection calls and proceedings.
- We will then work with you to get you and your debts discharged from bankruptcy. In summary, a few meetings are required: to instruct, coach and guide you in developing money-management skills, to prepare income tax returns that we must file, and to monitor your income and expenses in order to determine how much you must pay to us as Trustee. The length of time you are bankrupt is primarily determined by your income, and whether or not you have been bankrupt before.
If you are struggling with debt, bankruptcy can quickly help you regain control of your finances and eliminate much, if not all, of your financial stress.
If you would like an initial consultation to discuss and review your finances, please contact us. We would be pleased to meet with you. The consultation is free.
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