Français | Contact Us | Help | Search | Canada Site | ||||||
Home | Site Map | What's New | About Us | FAQs |
Bankruptcy Bankruptcy Basics | ||
Bankruptcy BasicsBefore we begin, we should correct one general misconception.Bankruptcy is just one possible outcome of a process that begins when a person or company is facing a financial crisis. So, let's start at the beginning. The insolvency process is a legal proceeding that is dealt with under the provisions of the Bankruptcy and Insolvency Act, an Act that is administered by the Office of the Superintendent of Bankruptcy (this office). If a person or company is unable to meet its debt obligations, it is said to be insolvent. When that happens, there are three main Bankruptcy options:
There are also three main players:
If you think you are in trouble financially, your first step should be to find a trustee who will determine if you are, in fact, insolvent. Trustees may be found in the telephone directory or by using our Trustee Database . If you are facing insurmountable debt, trustees will be able to help you through the process. While there are many variables, the general time frame for first time consumer bankruptcies is nine months. For company bankruptcies or for those who have faced bankruptcy before, there is no general time frame. Creditors can verify if a bankruptcy or proposal has been filed, and who the trustee is, by using the OSB's Insolvency Name Search service. In addition, to find information on your rights, as a creditor, during an insolvency, including how to become an inspector, visit the Creditors section of this web site. For more information, we invite you to visit our list of Frequently Asked Questions by Creditors or Frequently Asked Questions by Debtors . |
Created: 2005-08-31 Updated: 2005-10-04 |
Top of Page |
Important Notices |