Hamilton (905) 769-2005

The Bankruptcy Process

Bankruptcy is a stressful, scary situation. To help you better understand exactly what to expect when filing, we’ve assembled a step-by-step outline of the Bankruptcy process in Ontario.

A Step By Step Walkthrough of Bankruptcy

  • Consultation. The first step for any person considering Bankruptcy is to make sure that there are absolutely no other alternatives for debt relief. Our consultations at Fuller Landau are always free of charge, and together we will explore other potential options to help you avoid Bankruptcy, such as Consumer Proposals and debt consolidation. If these methods are not ideal for your specific financial situation, we will serve as your Licensed Insolvency Trustee throughout the Bankruptcy process.
  • Paperwork. If we determine that Bankruptcy is necessary, we’ll help you to properly complete the required forms and will file them on your behalf. When these forms are received by the Office of the Superintendent of Bankruptcy (often the same day as filing), you are shielded from your creditors. Your debts are frozen, interest will no longer accumulate, and your wage garnishments are lifted.
  • Asset Review. Your Trustee will work with you to determine what will happen to your assets. We will review the personal exemptions for which you are eligible and help you to deal with the rest.
  • Creditors Disappear. From this point forward, we will deal with creditors and collections agencies on your behalf. No more late payment notices or harassing collection calls.
  • Meeting with the Creditors. Your creditors are allowed to call a meeting to review your situation. These are exceedingly rare.
  • Bankruptcy Payments and Income Reporting. Throughout your Bankruptcy period, you will likely be required to pay a small amount on a monthly basis to your Trustee. These payments are always considerably lower than your original outstanding debt. Additionally, you will be required to regularly report your income. If your earnings rise from your initial assessment, your payments may be adjusted.
  • Mandatory Counselling. During your Bankruptcy period, you will be required to attend two mandatory counselling sessions. During these 30-60-minute sessions, you will receive valuable information on how to rebuild your financial situation, and avoid budgeting and money management issues that might cause financial trouble in the future.
  • Your Bankruptcy is Discharged. Assuming that you have attended the mandatory counselling sessions and are not required to pay any outstanding portion of your surplus income, you will be officially discharged from Bankruptcy. Payments can cease, and a letter of discharge will be mailed to you as proof that your Bankruptcy period is over. This document will be needed to inform credit bureaus that your Bankruptcy period has ended.

We’re Here For You Every Step of the Way.

The personal insolvency team at Fuller Landau is here for you. We’ll explore your options with you during a free consultation, and will help you through every step of the Bankruptcy process. Contact us today.


Consumer Proposal vs Bankruptcy

Can You Relate?

When it comes to debt, particularly high-interest debt from credit cards, a few missed payments can often become a slippery slope towards out-of-control debt.

Minimum payments barely cover the interest. If those minimum payments are missed, or if you need to go further into debt to pay them, it’s time to get help.

Nobody likes dealing with constant harassing phone calls or late payment notices. if you can’t afford to pay off all your debts, they won’t stop until you take action.

Often, wage garnishments from a creditor just compound the problem, and make it even more difficult to pay off your other debts.

Get A Fresh Start

It’s time to take back control of your life.
Call us today at (416) 927-7200 or fill the in the form below and book your free consultation.