Frequently Asked Questions
- What Duties Do I Have In A Bankruptcy?
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Section 158 of the Bankruptcy and Insolvency Act lists the following Duties.
Of these Duties many will not apply if you have not been self-employed. If you have been self-employed, please see comments below.
While it is sometimes necessary to attend a “Meeting of Creditors” it is very rare that you will be asked to.
An “Examination Under Oaths” is also possible but extremely unlikely in an average bankruptcy.
In general the duties which every bankrupt must comply with are as follows:
Tax Information
Provide all T-4’s and details for the Trustee to compile a pre-bankruptcy tax return, (January 1st to the date on which the bankruptcy commenced) and a post-bankruptcy tax return, (the date the bankruptcy commenced to December 31st). It will also be necessary to cooperate with your Trustee to ensure that any outstanding prior year’s tax returns are filed.
Counselling Sessions
Attend two counselling sessions with your Trustee or a qualified Insolvency Counsellor. These sessions will generally be beneficial to you. They are designed to ensure that you understand:
- The true cause of your insolvency
- How to manage and budget your income and expenses
- How to re-establish your credit rating
Complete Monthly Income And Expense (Budget) Reports
The Trustee will issue you with a series of blank Income and Expense forms. A set of forms must be completed monthly during your bankruptcy and submitted to the Trustee shortly after the end of the month you are reporting.
If your income shows a surplus above Government guidelines one half must be forwarded to the Trustee with these forms (more in certain extreme circumstances). Income from all members of your household must be declared. They will not be affected by the surplus income calculation, as they are pro-rated out of the calculation.
General Cooperation
You must keep your Trustee informed of your address and telephone number until your file is closed and the Trustee is discharged. This is usually about 18 months and 2 years but can be even longer.
You must assist the Trustee generally by providing a response to any questions which he or the creditors may have and by helping (if asked to) in the liquidation of any assets, etc. If you have been self-employed you must provide your books and records to the Trustee. You must assist with the preparation of any required GST, Payroll or Corporate Returns and in completing an inventory of your assets, among other things.
E. & O. E.
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.