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Difference between revisions of "Dealing with Debt (10:V)"
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→2. Personal Bankruptcy
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The debtor is required by law to engage a trustee to administer their bankruptcy. Personal bankruptcy using a trustee may cost the debtor approximately $1 685 (including $85 per counselling session, of which two are mandatory for a first time bankruptcy and GST). Usually the trustee will require a minimum payment to initiate the proceedings; however, the first appointment with a Trustee is free. The timelines for automatic discharge, in addition to being subject to fulfilment of the terms and conditions of the bankruptcy are dependent on both bankruptcy history and the individual’s surplus income (as prescribed by the Superintendent of Bankruptcy standards – Directive 11R2). | The debtor is required by law to engage a trustee to administer their bankruptcy. Personal bankruptcy using a trustee may cost the debtor approximately $1 685 (including $85 per counselling session, of which two are mandatory for a first time bankruptcy and GST). Usually the trustee will require a minimum payment to initiate the proceedings; however, the first appointment with a Trustee is free. The timelines for automatic discharge, in addition to being subject to fulfilment of the terms and conditions of the bankruptcy are dependent on both bankruptcy history and the individual’s surplus income (as prescribed by the Superintendent of Bankruptcy standards – Directive 11R2). | ||
If all the conditions of bankruptcy have been met, there are no facts for which a discharge may be refused pursuant to s | If all the conditions of bankruptcy have been met, there are no facts for which a discharge may be refused pursuant to s 173 of the BIA, and no objections have been filed by creditors or the Superintendent of Bankruptcy Canada; | ||
*A first-time bankrupt with surplus income payable less than $100 is automatically discharged after nine months; | *A first-time bankrupt with surplus income payable less than $100 is automatically discharged after nine months; | ||
*A first-time bankruptcy with surplus income greater than or equal to $100 is automatically discharged after 21 months; | *A first-time bankruptcy with surplus income greater than or equal to $100 is automatically discharged after 21 months; | ||
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*any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or, as of June 18, 1998 through an amendment to the Act, within 7 years after the date on which the bankrupt ceased to be a full or part-time student (BIA, s 178(1)(g)). | *any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or, as of June 18, 1998 through an amendment to the Act, within 7 years after the date on which the bankrupt ceased to be a full or part-time student (BIA, s 178(1)(g)). | ||
The full list of exceptions may be found in | The full list of exceptions may be found in s 178(1) of the BIA. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902. | ||
==== b) Assets That May be Retained by the Bankrupt in B.C. ==== | ==== b) Assets That May be Retained by the Bankrupt in B.C. ==== | ||