How do I become bankrupt?

How do I become bankrupt? How do I become bankrupt?

A person becomes bankrupt by voluntarily filing for bankruptcy or by having a creditor petition the court to make him/her bankrupt.

1.  Voluntary Bankruptcy: When you cannot pay your debts or reach suitable repayment agreements with your creditors, it may be time to consider bankruptcy.  To file for voluntary bankruptcy, you must complete contact a licenced trustee in bankruptcy like Rumanek & Company Ltd who will assist you in preparing the Statement of Affairs, assignment for the general benefit of creditors and other documents.  These are submitted to the government body, The Office of the Superintendent of Bankruptcy, that handles all requests for voluntary bankruptcies.

You must disclose all information on your personal and business debts.  This includes the name, address, and amount you owe to each of your creditors. You are also obliged to provide the full details of your income and expenses and personal assets such as houses, cars, bank accounts, life insurance, RRSPs and RESP’s, Canada Savings Bonds, investments, and any money you are owed.  Failure to disclose information can lead to serious penalties.

You are officially declared bankrupt when the Official Receiver, an employee of the Office of the Superintendent of Bankruptcy, has accepted your application and has appointed a Trsutee in bankruptcy.

2.  Creditor’s Petition: 
One of your creditors may petition the Federal Court to declare you bankrupt.  For this to happen, you must owe your creditor at least $1,000 and your creditor must provide evidence to the court that you have committed an act of bankruptcy. An example of an act of bankruptcy is letting your wages being garnished or not paying your bills on time.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  

Read more from our blog