Filing an assignment in bankruptcy can involve turning your assets over to a bankruptcy trustee. However, individuals going through bankruptcy are allowed to retain certain assets to maintain a reasonable standard of living. The assets you can keep in bankruptcy are determined by the law of the Province in which you live. In this video I describe the assets an individual can retain in a bankruptcy filed in British Columbia.
Individuals going through bankruptcy in Canada are required to pay a portion of their earnings to the bankruptcy estate if they earn more than guideline amount set by the federal government. We refer to this payment as "surplus income" and I explain the concept in this video.
Filing for bankruptcy provides you with immediate protection from virtually all unsecured creditors and any collections or legal action by creditors is immediately stopped. You no longer have to pay or deal with your creditors during bankruptcy. This protection lasts during your bankruptcy and until you are discharged - or released - from bankruptcy.
After filing for bankruptcy you are required to fulfill some duties and obligations. I provide some common examples in my latest video.
In Canada, bankruptcy must be filed through a Licensed Insolvency Trustee, who is responsible for administering the bankruptcy estate.
Before filing for bankruptcy, you must meet with a Licensed Insolvency Trustee who will assess your situation to ensure you qualify to file for bankruptcy. You qualify to file bankruptcy provided that you owe at least $1,000 and cannot meet your debt obligations as they generally fall due. The Licensed Insolvency Trustee will also explore whether you qualify for other options, such as a consumer proposal or debt management plan.
If you decide that bankruptcy is the right option for you, the Licensed Insolvency Trustee will collect financial information from you and prepare legal bankruptcy papers, which you must sign.
Once the legal paperwork has been signed, the Licensed Insolvency Trustee will file the papers with the Office of the Superintendent of Bankruptcy. Your bankruptcy process begins when the paperwork is filed.
In my latest video I address the question, "How Long Will I be Bankrupt in Canada?"