Are you seeking some financial help? do you want to know how bankruptcy is filed In Canada? We will provide you with the details of the bankruptcy process so that you would know how to declare bankruptcy in Montreal and you can work accordingly.
Bankruptcy in Montreal is managed as per Bankruptcy and Insolvency Act. To file this process a licensed Bankruptcy Trustee is required which will be easily available in your area.
These trustees are knowledgeable individuals as they have passed the examinations and oral test to avail the license. They take care of the bankruptcy and insolvency end to end process in Canada. All the cases which are filed under bankruptcy will be dealt by these licensed bankruptcy trustees only.
Office of the Superintendent of Bankruptcy is the department that appoints the Bankruptcy Trustees by issuing them the license. These trustees will directly deal with your bankruptcy process. They will be declaring bankruptcy in Montreal and will help you to overcome your financial issue. For more information, you can check poupartsyndic.ca.
Are you ready to know how this process will work? Come, let’s see this process.
Bankruptcy Process
Declaring the Bankruptcy
It is a legal process of surrendering your assets to be debt-free so that settlement can be done from a licensed Bankruptcy trustee. All the pre and post documentation, paperwork in the bankruptcy process, consultation are done by a licensed Bankruptcy trustee only.
- You need to set up a meeting with an experienced licensed Bankruptcy trustee so that you can discuss the issue with them. Post consultation, if a bankruptcy filing is the best solution then the trustee will initiate the process by getting all the paperwork done
- Post getting the paper signed, the copy of the paper is e-mailed to the Superintendent of Bankruptcy and they will forward it to credit bureaus informing your bankruptcy process
- Within 5 days, the assigned trustee will send bankruptcy paper to the creditors so that they can make a claim if required
Filing the Bankruptcy
Once the bankruptcy is filed by the licensed bankruptcy trustee, the below steps will be followed for this process
- On filing the bankruptcy “a stay of proceeding” will be applied on all your creditors. Secured creditors can seize your security assets if payment is not made even after filing the bankruptcy. Unsecured creditors will not be able to get in touch with you after filing for bankruptcy
- Your outstanding tax return will also be filed by the trustee till the bankruptcy date. Canada Revenue will be notified about this return, any money, if you owe, will be included in your bankruptcy, hence post completing the bankruptcy that amount will no longer be owed by you.
- An individual has the option to be free from this bankruptcy in nine months. The clause says:
- It should be his/her first Bankruptcy
- You should not have any extra income
Post Filing the Bankruptcy
Receiving the notice of discharge from your bankruptcy trustee means that the bankruptcy process is completed. Now you can reframe your credits as you have been set free from all of your unsecured debts in bankruptcy.
Your credit bureau report will show the details of the bankruptcy for six years post the date of discharge. This will automatically be removed but the information will still be tagged on your report. You will be able to find few lenders who will lend you the money and can rebuild your credit score which will help you to restart your business.
The licensed bankruptcy trustee will help you by guiding and counseling the best way to rebuild your business. They will guide you the best possible alternative and will help you with all the financial issues.
Bankruptcy Responsibilities
Below are the important responsibilities that need to be fulfilled during the bankruptcy process
- You need to send every month the proof of your income to your licensed bankruptcy trustee
- You need to attend two credit sessions mandatory wherein counseling will be done to explain various aspects of the business
- You need to make payment to your bankruptcy trustee
- You need to attend the creditors meeting if required
To have a smooth bankruptcy process we need to select a licensed bankruptcy trustee who will work closely with us by understanding the creditor and the business and making the best plan suitable for us. The trustee will understand your outstanding amount, the debt which you have to pay will counsel you, and will advise the best alternative suitable for the situation.
Who is eligible for Bankruptcy?
If you face any below scenario then you can opt for bankruptcy for which you need to consult a licensed bankruptcy trustee.
- Not been bankrupted
- Assets are not equal but less than the liabilities
- Loan limit exhausted from the bank
- Unable to pay bills
- Unable to pay the debt within the timelines
- Debt value should be more than equal to $1,000
- Should be resident of Canada
These pointers are necessary to keep in mind while filing the bankruptcy as whoever will fulfill these criteria would be able to file for bankruptcy.
Advantage of declaring Bankruptcy
When you are not able to pay your debts on time, the best practice is to visit a licensed bankruptcy trustee for help.
- It helps with debt settlement
- Creditors follow up gets finished and you get a bit of mental peace
- A consultation will be done to make you aware of the process to manage the finance and to grow the assets for the business again
- After the bankruptcy settlement, you will be able to rebuild your business and improve your credit score
Bankruptcy is a very important process that needs to be done to settle the outstanding liabilities by adjusting the available assets. For this process, a licensed bankruptcy trustee will be needed.
Conclusion
Now, you have the bankruptcy process handy with you and you know what needs to be done if anytime in life you face business issues. The bankruptcy process helps everyone to settle the outstanding and give a chance to rebuild the business.
