Sands & Associates Vice-President and licensed Trustee Blair Mantin appeared on today’s CTV Morning Live segment “Ask an Expert”. An often misunderstood process, today’s episode asks: “What is bankruptcy?”
Watch the clip here, and read more below:
Bankruptcy is a legal process that is available as a means to resolve debts.
- One of the main purposes of bankruptcy legislation in place, and why people choose bankruptcy as an option, is the opportunity to free themselves from unmanageable debts and gain a fresh financial start.
The first step in the bankruptcy process is to meet with a licensed Trustee to discuss your specific situation and review the various options that are available to you.
- Other alternatives are available besides bankruptcy, such as a consumer proposal or credit counselling; a Trustee can also assist you with those solutions.
- No referral is needed and this initial meeting is free of charge.
If you decide to file for bankruptcy, a further meeting would be set for you to sign the actual bankruptcy documents, which the Trustee will prepare for you. Once the legal documents have been signed, the bankruptcy is then registered electronically with the Office of the Superintendent of Bankruptcy. At this point Canadian law creates a barrier between you and your creditors which requires them to stop all collection activities.
There are some duties required of you under the bankruptcy process; generally there are two main duties.
- One is to submit what’s called a “Statement of Income and Expense” form each month, reporting your household income and expenses – this will also set the monthly amount that needs to be paid each month.
- Two financial counselling sessions will also need to be completed.
Depending on income levels, a discharge or “exit” from bankruptcy would typically be obtained after either 9 or 21 months.
- This is the official release from your debts and completion of the bankruptcy process. You have now achieved a fresh financial start!
With over 29 years of experience, Sands & Associates is BC’s largest firm of Credit Counsellors, licensed Proposal Administrators and Bankruptcy Trustees focused exclusively on assisting individuals and small businesses achieve their “debt free” goals.