What happens when I go bankrupt in Ontario?

The bankruptcy process starts with an initial consultation with an Ontario bankruptcy trustee. They will explain you options, including your bankruptcy alternatives. If you decide to go bankrupt, you will provide the trustee with the information needed to start the bankruptcy. The trustee will prepare the necessary government forms for you and explain what happens when you go bankrupt in Ontario.

Once you have signed the paperwork the trustee will electronically file the documents with the Office of the Superintendent of Bankruptcy, a division of the federal government that monitors all bankruptcies in Canada. Your bankruptcy will therefore start immediately. Within five days of filing all of your creditors are notified that you have filed bankruptcy, and they are directed to the trustee to file their claim for the amount they are owed.

During the bankruptcy period you are required to do the following:

• Provide the trustee with your tax information to file your outstanding tax returns;

• Submit each month copies of your pay stubs and proof of other income;

• Attend two credit counselling sessions to help with budgeting, and help you get a frest start at the end of the bankruptcy;

• Make the required contribution (payment) to your bankruptcy estate;

• Surrender any non-exempt assets;

• Complete any other duties requested by the trustee.

At the end of the bankruptcy period, you are discharged from bankruptcy, and your debts are discharged.

Please contact an Ontario bankruptcy trustee for more information on what happens when you go bankrupt in Ontario.