Frequently Asked Questions

No, with the exception of high-value furniture, such as antiques and art objects, which are not considered essential.
Yes, unless they are the result of fraud.
No, unless your wage has already been garnished (i.e. seized).
The bankrupt person’s wage (including commissions) will be monitored monthly. In addition, every month, the person who filed for bankruptcy will have to inform of their total family income by giving proof of revenues (pay slip, income tax, bank statements), which will be given to the trustee, in order to report his or her income and expenses. This information will be necessary to calculate the amount of the bankrupt person’s monthly household income, amounts spent on rent, food, clothing, etc.
The bankrupt person will be required to pay the trustee a portion of any excess income, every month, in accordance with the standards established by the Superintendent. These standards set out the maximum amounts necessary to support the household of a bankrupt person. Surplus income payments must be made every month for the duration of the process.
Your creditors will be notified by mail, fax or email. In most cases, no publication will be made in newspapers, but be aware that the process is nevertheless in the public domain.
Yes, because according to the law, any action against you must stop immediately. Secured creditors and alimony payments are not affected.
For a bankruptcy that is subject to summary administration, the fees are represented by the rate specified in the law and depend on your income. The base fees cover all services provided, including the cost of mandatory counseling sessions and registration fees. During your initial consultation, it will be decided whether it is better to opt for affordable monthly payments or to pay the full amount at the outset. These monthly payments or that lump sum payment are part of the obligations relating to surplus income payments. For a bankruptcy under ordinary administration, involving significant assets and requiring a considerable amount of work on the part of the trustee, the trustee’s fees will be based on the number of hours worked by the trustee’s staff, the complexity of the file and many other relevant factors. The fees are subject to review by the Office of the Superintendent and, need to be approved by the inspectors/creditors and the Court.
If the value of your house is equivalent to the balance of your mortgage, it may be possible to make arrangements with your mortgagee. However, if the value of your home is substantially higher than your mortgage balance, you should probably consider other solutions.
In some cases, your belongings may be seized. However, once you are under the protection of the Bankruptcy and Insolvency Act, your creditors will no longer be able to seize them.
Normally, the credit of people in financial difficulty has already been affected. Following a bankruptcy, a notice will be placed on your credit report and it will remain there for a period of 6 to 7 years.
All RRSPs are exempt from seizure, except for contributions made during the past twelve (12) months.
The monthly cost is determined by the government, based on your income. Since you will no longer have to pay your debts after bankruptcy, you will then be able to make your payments every month.
In most cases, you will be able to keep your car. If it is leased, you will need the lender’s agreement to keep your vehicle and you will have to make sure you meet the monthly payments. If the value of your car is minimal, you could keep it, under certain conditions.
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