When considering making an assignment in bankruptcy it is important to understand the duties that you may be required to perform in accordance with Canada’s Bankruptcy and Insolvency Act.
These duties include:
o Delivering all non-exempt property to the Trustee
o Delivering all credit cards to the Trustee
o Delivering pertinent books and records to the Trustee
o Submitting to examination. (This is a very uncommonly enforced duty that is typically only required where the Trustee, Official Receiver, or Creditor suspects wrongdoing).
o Preparing a Statement of Affairs outlining what you own and what you owe.
o Assisting the Trustee in making an inventory of assets
o Disclosing transfers of property that occured within the last 5 years
o Attending the First Meeting of Creditors of such a meeting is requested by creditors or the Official Receiver.
o Attending other meetings as necessary (These are rarely required)
o Aid the Trustee in disposing of non-exempt assets to be used for the general benefit of creditors
o Executing documents as required
o Identifying false claims submitted by creditors
o Disclosing and material adverse changes to your financial situation (for example, you are required to let the Trustee know if you lose your job)
o Adhere to the direction of the Trustee, Bankruptcy and Insolvency Act, and Court
o Advise the Trustee of any change in your address
Bankruptcy is a two way street where the bankrupt has certain rights and certain responsibilities. The duties outlined above represent many of the bankrupt’s responsibilities. In short, bankrupt’s are expected to cooperate with the Trustee, be truthful, and not attempt to defraud their creditors. Many of these duties are quite obvious and come naturally to those making an assignment in bankruptcy.
If you have any questions about the duties of a bankrupt or the bankruptcy process as a whole, then drop us a line. Let us impress you with our prompt response after you fill out the form below. What are you waiting for? You’ve got nothing to lose except your debt!