CBB

Bankruptcy is a legal process described in the Bankruptcy and Insolvency Act. Bankruptcy is appropriate if an individual is unable to resolve their financial difficulties by other means. With a few exceptions, bankruptcy immediately terminates creditor collection calls and legal proceedings. Interest on unsecured debts also stops accruing and it is not necessary to make further payments to them. Upon declaring bankruptcy, the Trustee in Bankruptcy will take possession of the bankrupt’s assets (except those exempt from seizure by law), sell them and distribute the funds to the creditors. Bankruptcy terminates, upon discharge, most, if not all, of an individual’s debts.

To declare bankruptcy, one must: not be in bankruptcy; owe at least $1,000; not be able to make regular payments as they become due; or, have debts that are greater than the realizable value of their assets.

As noted, bankruptcy immediately stops substantially all legal claims, garnishments or other legal proceedings.  If you are served with legal or collection notices after bankruptcy, we will immediately advise the creditor and put an end to the proceedings.  Exceptions are legal proceedings with respect to alimony claims, spouse and partner support claims and child support claims.

To begin the process, you must contact a Trustee in Bankruptcy. Collins Barrow Brown Inc. is a Licensed Trustee in Bankruptcy. Trustees in Bankruptcy are appointed and regulated by the federal government. They are subject to comprehensive professional training and rigorous codes of ethics. As an intermediary between you and your creditors, the Trustee will oversee the sale of your assets, if applicable, and the distribution of the proceeds to your creditors. The Trustee is also responsible for dealing with telephone calls and queries from creditors and providing them with various reports on the status of the bankruptcy.