FREQUENTLY ASKED QUESTIONS (FAQ)

What about my credit rating?

• Once your level of debt becomes so great that bankruptcy is required, your credit rating is destroyed. Your ability to obtain and use credit after discharge depends on convincing lenders of your personal financial maturity. Your credit rating can only improve after bankruptcy.
• Once you are discharged from bankruptcy, send a copy of your Discharge Order to both Credit Bureaus so that your credit record can be updated.
• All documents relating to your bankruptcy should be saved for reference by future lenders.

Are my spouse assets included in my bankruptcy?

• No only assets owned by the bankrupt are included in the bankruptcy.
• If assets are jointly owned with a spouse, then the bankrupt's portion may have to be sold and distributed to the creditors.
• It is important to make the Trustee aware of joint assets so that each case can be reviewed individually.

Do I require a lawyer?

• Generally, you do not require a lawyer to go bankrupt. If you feel the need for legal advice and cannot afford a lawyer, legal aid may be available.

Will legal actions continue after bankruptcy?

• All legal actions relating to your debts halt when the assignment is filed. If you receive any writs, garnishments or other legal documents after the date of bankruptcy, contact the Trustee immediately. Criminal and matrimonial actions continue.

What about new assets obtained during my bankruptcy?

• All assets acquired prior to your discharge should be used to pay creditors through your Trustee. Lottery winnings and inheritances are considered assets if they are acquired before your discharge from bankruptcy and must be paid to the Trustee for distribution to your creditors.

Can I maintain my bank account?

• Yes, however if you are indebted to the same bank, it may be prudent to move your account elsewhere.

Should I use credit prior to discharge?

• Under Section 199 of the Bankruptcy and Insolvency Act, an undischarged bankrupt should not use credit. Section 199 is located at the back of this guide.
• You must deliver all of your credit cards to the Trustee upon filing an assignment in bankruptcy.

How are joint debt or loan co-signers affected?

• Bankruptcy does not stop the liability of anyone who guaranteed or co-signed a loan on your behalf.
• Even your spouse may be accountable for liabilities incurred jointly with you.
• It is important to make the Trustee aware of joint liabilities so that each case can be reviewed separately.

Who will know about my bankruptcy?

• Your bankruptcy and discharge are matters of public record.
• Bankruptcy documentation is stored with the Superintendent of Bankruptcy.
• Statutory documents and discharge records are available to all Credit Bureaus.
• Employers are not normally notified of personal bankruptcies and notices of summary bankruptcies are not published in newspapers.

How should I handle telephone calls and harassment?

• The bankruptcy process offers a chance to rehabilitate yourself and to relieve the pressure from creditors.
• Any telephone calls received from creditors after bankruptcy should be referred to the Trustee.
• If the calls are distressing, threatening or verbally abusive, make note of the person calling, the name of the company they represent, details of the conversation and then contact your Trustee.
• Harassment is against the law.