Steps in the bankruptcy process

If you are considering going bankrupt, your first action should be to consult a licensed insolvency trustee to obtain all the necessary information and learn more about the steps in the personal bankruptcy process.

The Office of the Superintendent of Bankruptcy Canada can help you find a trustee.

Supervision of the process

Your trustee will provide support throughout the bankruptcy process. In addition to two compulsory consultation meetings, your trustee will work with you to:

• file the necessary forms (filing for bankruptcy marks the beginning of the process and stays any proceedings your creditors have instituted against you);
• sell your seizable property;
• distribute the proceeds of the sale to your creditors.

Your trustee will ensure that the process follows its usual course by forwarding all the necessary information to the courthouse and to your creditors.

Discharge of your debts

Your trustee will guide you through the process until the discharge of your debts, which will occur automatically or following a court judgment.

If this is your first bankruptcy and it has not been opposed, your debts will be discharged 9 months after the start of the process (or 21 months if you have surplus income).

This step marks the end of the bankruptcy process.

Credit rating

When you are discharged a note is added to your credit file. In general, if this is your first bankruptcy, the note will remain on file for 5 to 7 years.

To check your credit rating following a bankruptcy, you must contact the relevant credit agencies.