Watch to learn what to do after you claim bankruptcy in Winnipeg
Everything is set. Your Licensed Insolvency Trustee filed the necessary papers to start the process.
You’ve listed all of your assets and debts for the Trustee and the Trustee has notified your creditors of your bankruptcy.
You’ve stopped making bill payments and the debt collectors don’t call anymore.
If your wages were being garnished, the Trustee has put a stop to it.
It was a tough decision to reach out for help. But you now have a solution. You can finally exhale.
Now, there’s more to do, so here’s what you can expect.
Your duties are simple
Your Trustee will have gone over the requirements under the Bankruptcy and Insolvency Act of Canada. Many things won’t apply to you, but here are some that do:
You must provide monthly income and expense statements to your Trustee, including pay stubs if you have them.
You’ll be required to make monthly payments to your Trustee. If you have income above the government limit set by household size, half of the surplus goes to payments. You keep the other half.
You are not allowed to borrow more than $1000 from anyone, relatives included, without informing the lender that you are bankrupt.
You must keep the Trustee informed of your address, and…
You must provide the Trustee with the information needed to file your tax returns.
You’ll keep most assets
You’ll get to keep most of your assets since they are protected — things like your clothing and personal effects, household goods, furniture, registered pensions and RRSP’s.
In many cases, if you wish to do so, you will be able to continue to make payments on your car as long as the creditor agrees.
Typically, if you’re up to date on your mortgage, you will be able to keep your home, depending on the equity you have in it.
The money made from the sale of any assets is held in trust by your Trustee, for your creditors.
You’ll learn about financial planning
Everyone who declares bankruptcy is required to attend two financial counselling sessions.
You’ll learn good financial management skills, such as budgeting, saving, and planning for the future.
You’ll also learn to track your income and expenses so that things don’t get out of your control.
You’ll have a chance to build your savings
You’ll be encouraged to save for future needs, If you have surplus income you get to keep half, which will give you a great start.
So, for example, if your excess income is $400 per month, you’ll be paying $200 to your Trustee and saving $200 per month. In 21 months, you’ll have $4200 saved!
Discharge in as little as 9 Months
If it’s your first bankruptcy AND you’ve met the conditions, your bankruptcy can be automatically discharged in 9 months. If you have surplus income, it will be 21 months.
That’s it. You are no longer in bankruptcy.
Once you complete the process, you’ll be debt-free, maybe have some savings tucked away, and ready to build a bright financial future for you and your family.
For more information, call LCTaylor at 1.800.463.8371.