What Questions Should I ask a Personal Bankruptcy in Canada?
Personal bankruptcy is a complicated legal process that should only be started after you have fully researched all of your options. Start by talking to trusted family members and friends, and researching your options on sites like www.bankruptcy-canada.ca, one of Canada's most popular and informative sites about personal bankruptcy.
If you want more information about personal bankruptcy in Canada, contact a licensed bankruptcy trustee to set up a meeting to review your options.
At that meeting, here are some questions you should ask the trustee:
First, ask if the trustee specializes in personal bankruptcy or corporate bankruptcy. You want a trustee that deals primarily with individuals, not big corporations.
Second, ask if you will be meeting with the trustee personally, or if most of your meetings will be with a member of the trustee's staff. If you will be dealing primarily with their staff, find out how much experience the staff member has. If they have just started working in the field, you may want to deal with someone with more experience, or you may want to ask the trustee to be more involved in your bankruptcy case.
Third, find out how long it will take to get your bankruptcy started. The trustee will gather some information and then prepare the paperwork. If your wages are about to be garnisheed, you will probably want the bankruptcy process to start as soon as possible.
Fourth, ask about your other options. You may believe that personal bankruptcy is the correct option, but in Canada there are other options. For example, in Canada it is possible to do a consumer proposal as an alternative to bankruptcy. In a consumer proposal you make one payment each month, which is distributed to your creditors. By doing this you avoid bankruptcy and are still able to deal with your debts. Be sure to have the trustee explain your options in detail, so that you can choose the option that's best for you.
Fifth, ask what you are required to do while you are bankrupt. All trustees will require you to provide proof of your income and expenses each month, because as your income changes, your payment to the trustee may change. You will also be required to attend two credit counseling sessions before your bankruptcy is over. Make sure you understand when these sessions will be scheduled, and where they will be. The trustee is also required to file your taxes, so you should understand what information you are required to provide to the trustee.
Finally, ask how much the bankruptcy will cost. Most Canadian bankruptcy trustees will require a payment at the start of the bankruptcy, and then payments each month of the bankruptcy. The payment will increase as your income increases, so it is important to understand how the payment is calculated. Ask about additional costs as well, such as payments to keep your assets, or other charges. Find out if you will lose your RRSP, your GST refund, and your tax refund, and if so, for how long.
By being fully informed you can make the most of your first meeting with your personal bankruptcy trustee.
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