Bankruptcy – Process

Step #1 – Speak to a Trustee

The process begins by having your situation reviewed by a licensed Trustee in Bankruptcy like the ones at Welker and Company.  The Trustee will take the time to review your situation, and explain your options.

Step #2 – Weigh your Options

We encourage thoughtful consideration of your options to determine if bankruptcy is the best way forward.  Your Trustee in Bankruptcy will provide the legal facts and professional advice to help you make the best decision possible.

Step #3 – File the Papers

After deciding that bankruptcy is right for you, you’ll meet with your Trustee to sign the papers which your Trustee will register with the Federal Government.  Most of the paperwork is standard government forms.

Step #4 – Notification

Your Trustee will notify every one of your creditors to allow them to participate in your bankruptcy.  They will no longer be able to contact you directly, garnishee your wages, or attempt to collect what you owe them.  Their sole contact becomes your Trustee.

Step #5 – Duties

Every bankrupt must fulfill certain duties before their discharge, which are:

  • Attending two free individual credit counselling sessions;
  • Reporting your income on a monthly basis;
  • Providing income tax information in the year of your bankruptcy; and
  • Making all required payments.
Step #6 – Discharge

After fulfilling your duties, and the length of your bankruptcy coming to an end you will receive an automatic discharge.  This means that you are discharged from all of your debts without having to set foot in a court room or appear before a judge.

Step #7 – Rebuilding Credit

The key to rebuilding credit is paying your bills on time, every time, to organizations who report your payments to one of Canada’s two credit bureaus: Transunion and Equifax.  A secured credit card is usually the easiest way to obtain credit from a reporting institution immediately after your discharge, which is why we recommend this to every one of our discharged bankrupts.

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