How Bankruptcy Works
Steps 4-6: Inform Creditors and Attend Meetings
Creditors Notified of Bankruptcy
Possible Meeting With Creditors and/or OSB
Most people who go bankrupt don’t need to meet with their creditors or the OSB office to explain their circumstances. However, in the event that your situation is not straightforward, you might need to go through these additional 3 steps to obtain your discharge from bankruptcy. Your trustee will provide further information if you need to meet with your creditors.
Your Creditors Find Out That You Decided to Go Bankrupt
Your trustee will notify your creditors. If you’re required to meet with them, your trustee will advise you of the process.
A Creditor Meeting Might Be Called
Not everyone will meet with their creditors. However, if a meeting is called, you will need to attend. The purpose of the meeting is so that creditors can obtain information about the bankruptcy and give directions to your trustee.
If Required, Attend a Meeting With an Officer of the OSB
The OSB office plays an important role in your bankruptcy process. Sometimes they have questions or concerns that you must respond to under oath. The intent of the examination is to find out about “your conduct, the causes of the bankruptcy and the disposition of your property.” It’s in your best interest to enter into the bankruptcy process with fully honest intentions.
A Common Question About Creditors and the Bankruptcy Process
Continue on to step 7: Attend Two Bankruptcy Counselling Sessions – Meet with a trustee or a designated RQIC (Registered and Qualified Insolvency Counsellor) in order to be discharged from bankruptcy. Discuss and create a plan so that you will not get into financial trouble again. This could be making a monthly budget or learning how to manage credit.
Creditor Bankruptcy Notifications, Bankruptcy Counselling Info and Bankruptcy Alternatives
If you’re struggling to pay your debts and need more information about creditors being notified of your bankruptcy or the 2 mandatory bankruptcy counselling sessions (in order to obtain discharge), contact the OSB. For information about bankruptcy alternatives, contact us right now so that you can make an informed decision.
Why Talk to Creditors?
When you’re in debt, your creditors can help you. But communicating with them effectively is key.
What is Insolvency?
Insolvency in Canada is a legal last resort when you can no longer repay what you owe.
Options for Bankruptcy
Here are 6 times when filing bankruptcy might not be right for you. Know what to expect.