How to Apply For Bankruptcy

In Canada, only Licensed Insolvency Trustees can file bankruptcies. Reynolds & Associates is a Licensed Insolvency Trustee and is a trusted and reliable company to guide you through the process.

Despite what you may have heard, filing for bankruptcy can be an easy and stress-free process if you are speaking and working with the right people.

When you decide to file bankruptcy, we will provide you with all of the necessary information and tools you need to make this a successful path to becoming debt-free. You will feel confident in the process and in us!

Here is what you can except and how you go about filing for bankruptcy:

  1. Speak with a Licensed Insolvency Trustee

Only an LIT can help you file for bankruptcy.

Our first step will be to conduct a detailed assessment of your financial situation and determine if a bankruptcy is a viable option to manage your debts.

We will review your financial situation in detail, discuss possible options, and explain the process going forward.

  1. Determine if you are eligible

An LIT can help you determine if you are eligible to file a bankruptcy as there are minimum requirements in Canada.

The amount of debt, your personal and family situation, monthly income and expenses, assets and equity, financial history and several other factors will be considered in order to determine if a bankruptcy makes sense.

  1. File for bankruptcy

Your LIT will have prepared all necessary forms for your review and signature. All documents will be thoroughly explained and discussed before signing.

Once the legal forms are signed, the LIT will submit the bankruptcy filing with the Office of the Superintendent of Bankruptcy. A Certificate of Appointment will be issued, naming the LIT as the Trustee of the bankruptcy estate.

An immediate Stay of Proceedings will be implemented, protecting you from creditors.

The LIT will notify your creditors of the proceedings and will take over dealings and communications with them.

You will finally have some peace of mind knowing that collection calls with stop and you have taken the first step to financial freedom!

  1. Complete your duties

You will have duties and responsibilities during the course of the bankruptcy proceedings. Theses will have been explained to you prior to filing so that you are aware of what is expected of you.

Some examples include attending two credit counselling sessions, reporting your monthly income, and making monthly payments based on your income.

Communication with your LIT is imperative to ensure success and completion of the bankruptcy process.

At the expiration of the bankruptcy process, if all duties have been met, you will receive a discharge from your debts!

  1. Be discharged from your debts!

The duration of the bankruptcy proceedings will differ depending on whether or not you have surplus income obligations, and if you have previously filed for bankruptcy.

If all duties are completed and there are no oppositions to your discharge, then you can expect to receive a discharge after:

9 months for a first-time bankrupt with no surplus income

21 months for a first-time bankrupt with surplus income

24 months for a second-time bankrupt with no surplus income

36 months for a second-time bankrupt with surplus income

The discharge is your legal release from the debt. The LIT will issue your discharge at the expiration of the required timeframes if creditors have not opposed your discharge and all of your duties have been met.

6. Start rebuilding your credit

Getting your discharge from bankruptcy is key to a financial fresh start and releasing you from your debts.

Once you are discharged from bankruptcy, you can expect that it will report on your credit bureau for an additional 6-7 years, or for an additional 14 years if it is not your first time filing for bankruptcy.

There are many things that you can do to start rebuilding your rating. Our credit counsellors are a great resource of knowledge and will provide tips and tools to start your path forward. In your mandatory credit counselling sessions, we will discuss how to rebuild your credit and what options are available to you.

Continue to monitor and update your credit report after bankruptcy to ensure long term success in rebuilding your credit.

You can reach us through the following numbers in Ontario:

Sudbury: 705-560-HELP (4357)

North Bay: 705-495-HELP (4357)

Espanola: 705-869-HELP (4357)

Sault Ste. Marie: 705-759-HELP (4357)

Or via our email address:

Email: [email protected]