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Bankruptcy
What Is Bankruptcy?
Bankruptcy is a legal process where a debtor who cannot pay his or her bills can be relieved of most debts. This is done by filing an "assignment in bankruptcy" with the help of a bankruptcy Trustee. In order to apply for bankruptcy, a debtor must be unable to pay his or her debts and those debts must total more than $1,000. A bankruptcy can remain on a debtor's credit record for up to fourteen years. During bankruptcy proceedings, the Trustee takes charge of all of the debtor's property and distributes the proceeds among his or her creditors in accordance with the Bankruptcy and Insolvency Act. The Act also provides a system which enables debtors to make proposals to creditors to pay debts over time, usually at a reduced amount. The Trustee looks after the bankruptcy. A bankrupt will only come to court when he or she is seeking to end the bankruptcy (also known as "discharging" it) and it is his or her second bankruptcy or if the creditors oppose the discharge. Are There Any Debts Not Released By Bankruptcy?
Section 178(1) of the Bankruptcy and Insolvency Act sets out certain debts that are not released by an order of discharge. The most common are any fine, penalty, restitution order, child support payments and alimony payments that are set out in a court order or agreement, and any debtarising out of fraud. It is important to note that student loans are not dischargeable for a period of 10 years from when the bankrupt ceased to be a full or part-time student. Where Is The Bankruptcy Court?
The bankruptcy court is located at:
Where Can I Get More Information About Bankruptcy?
A trustee or lawyer can provide you with more information. Consult the Yellow Pages for listings in your area. The Office of the Superintendent of Bankruptcy, can be contacted at (306) 780-5391 (Regina). The Public Legal Education Association of Saskatchewan has pamphlets located at http://www.plea.org. In Saskatchewan, the Provincial Mediation Board can provide information about personal debt management, orderly payment of debts, mortgage foreclosures, and credit counseling programs.The phone number is 1-888-215-2222 or (306) 933-6520 (Saskatoon) or (306) 787-5387 (Regina) Click here for a copy of the Bankruptcy and Insolvency Act. |
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