Canada’s Bankruptcy process is governed by federal legislation known as the Bankruptcy and Insolvency Act. That means that the Bankruptcy process is the same in Ontario as it is in the rest of Canada, right? Not entirely. Each province is responsible for its own set of laws which are referred to by the Bankruptcy and Insolvency Act. For example, each province has different legislation for personal property, as a result a portion of your home is exempt from seizure in Alberta, but not exempt in Ontario.
Fortunately, the process to claim personal bankruptcy in Ontario is the same as it is in every other province. It starts by scheduling an appointment with a licensed Trustee in Bankruptcy, like those who work at Welker and Company. Canadian law requires that everyone claiming personal bankruptcy meets with a licensed Trustees in Bankruptcy who will review your situation to make sure that Bankruptcy is your best course of action. Once you’ve reviewed your options with a Trustee, he or she will assist you in filing your assignment in bankruptcy with the Office of the Superintendent of Bankruptcy, which is a division of Industry Canada.
They call it an assignment in bankruptcy because you assign nearly all of what you own and what you owe to your Trustee who uses what you own to pay the people you owe based on rules outlined in the Bankruptcy and Insolvency Act.
While a considerable amount of paper work is involved, the process is quite simple and doesn’t require much time. You can usually claim bankruptcy in Ontario during a single meeting with a Trustee; however we like to provide our clients with time to consider their options before making a final decision and invite free follow up appointments.
After you claim bankruptcy, your creditors will be notified and your Trustee will complete the process described in more detail on our bankruptcy service page found here.
We also provide services to help you avoid bankruptcy, including a Consumer Proposal. Read more about Consumer Proposals here.
If you’re wondering how to claim bankruptcy in Ontario, you’ve come to the right place. Our Trustees in Bankruptcy are waiting to speak with you, understand your situation, and explain your options to you. Get the facts and make an informed decision. You’ve got nothing to lose except your debt!