Personal bankruptcy is a legal process which allows you to be discharged from most of your debts. Once filed, the property of the debtor is given to a trustee in bankruptcy who then sells it and distributes the money among the debtor’s creditors in settlement of the debt.

1. The Bankruptcy
Process
A Step-by-Step Guide
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2. Table of Contents
What is Bankruptcy?
Step #1: Contact a Trustee
Step #2: Forms and Documentation
Step #3: Filing with the Official Receiver
Step #4: Bankruptcy Duties
Step #5: Discharge from Bankruptcy
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6
9
12
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3. Personal bankruptcy is a legal
process which allows you to be
discharged from most of your
debts.
Once filed, the property of the
debtor is given to a trustee in
bankruptcy who then sells it and
distributes the money among
the debtor’s creditors in
settlement of the debt.
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What is Bankruptcy?

4. Step #1: Contact a Trustee
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To start the bankruptcy process,
the first step is to contact a
licensed insolvency trustee. The
trustee will assess your financial
situation and explain the options
available to you, including
bankruptcy and its alternatives.

5. Step #1: Contact a Trustee
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A Licensed Insolvency Trustee is
licensed by the federal
government of Canada. Only a
licensed insolvency trustee can
file bankruptcy for you in
Ontario.

6. If you decide to file bankruptcy after discussing
your options, the trustee will help you complete
several forms which you will have to sign. You are
considered a bankrupt only when the trustee files
these forms with the Official Receiver.
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Step #2: Forms and Documentation

7. Step #2: Forms and Documentation
Filing bankruptcy in Ontario requires the completion of
at least two forms:
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1. Assignment 2. Statement of Affairs
In the assignment you
state that you are handing
over all of your property
to the trustee for the
benefit of your creditors.
In the statement of affairs you
list your assets, liabilities,
income and expenses. You will
also answer several questions
about your family, job and
disposition of assets.

8. Step #2: Forms and Documentation
Before you sign the forms, make sure you understand
the legal documents that are part of your bankruptcy
file. Although the trustee prepares them from the
information you provide, they are your statements.
You are responsible for the accuracy of their contents.
Review them carefully before you sign.
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9. Step #3: Filing with the Official
Receiver
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Once you have filed the
appropriate documentation with
the Official Receiver, you are
legally bankrupt. At this point,
the bankruptcy process cannot be
reversed without a court order.

10. Step #3: Filing with the Official
ReceiverIn very rare cases (about 1 in every 1,000) a meeting of
creditors will be held. Creditors or the Official Receiver
may request one after you file bankruptcy.
If a meeting of creditors is called, you must attend the meeting. Your
trustee will prepare a report about your assets and liabilities for the
creditors, and you may be asked related questions. The creditors will
then vote to either confirm the trustee's appointment, or substitute a
trustee of their choice. The creditors will then have an opportunity to
vote for the appointment of inspectors. They may also give directions
to the trustee with reference to the administration of the estate.
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11. Step #3: Filing with the Official
Receiver
During the bankruptcy
process, the Official
Receiver may require
you to appear for an
examination under
oath. You will be asked
questions about:
• The causes of your
bankruptcy
• Your conduct
• The disposition of your
property
• The nature of your debts
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12. You are required to perform
certain duties during bankruptcy
including:
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Step #4: Bankruptcy Duties
• surrender your assets and credit cards
• attend two credit counselling sessions
• provide proof of your income and expenses
• make payments including if required
surplus income payments
• provide information needed to file
necessary tax returns

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There is a filing fee to be paid to the Superintendent
of Bankruptcy, and the trustee is entitled to be paid.
In general, you will pay a monthly contribution to
your bankruptcy, and you will pay a surplus income
payment based on your income.
Contact us to review your situation and explain in detail the
cost of your specific bankruptcy.
Step #4: Bankruptcy Duties

14. There will be an automatic
bankruptcy discharge for first-
time bankrupts nine months after
they become bankrupt, unless the
trustee recommends a discharge
with conditions or it is opposed.
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Step #5: Discharge from Bankruptcy
Additionally, if you have surplus income of more than $200 per month, your
bankruptcy will be extended to 21 months (in the case of a first bankruptcy).

15. There is hope.
You can be debt free.
View our Guide to Personal
Bankruptcy in Ontario
Or give us a call at
310-PLAN