What Are My Duties In Bankruptcy?

What Are My Duties In Bankruptcy?

All parties to a bankruptcy have certain duties and responsibilities under the Bankruptcy and Insolvency Act (BIA).  The bankrupt person will be required to actively participate in the process to enable the Trustee to properly administer the estate and deal with all of the relevant issues.

The following is a breakdown of the duties of the bankrupt person:

  1. Make full and complete disclosure of:
    • all assets owned or controlled at the date of bankruptcy or which may become owned or controlled before discharge. This includes assets that are pledged as collateral or security for any loan.
    • all debts owed to or from any party including related parties.
    • all assets sold, disposed of, transferred, pledged as security or given away at any time during the 5 year period prior to the date of bankruptcy.
    • all payments, except regular monthly payments, made to any creditor within 12 months prior to bankruptcy.
  2. Provide to the trustee all books and records related to property/assets and transactions as may be required by the Trustee.
  3. Deliver all credit cards to the Trustee unless they have previously been destroyed or returned to the credit card issuer.
  4. Attend meetings of creditors, meetings requested by the Trustee, an examination under oath, or mediation, if required.
  5. Assist in making an inventory, if required by trustee.
  6. Assist the Trustee in the realization of property / assets.
  7. Assist the Trustee with the review and verification of any claims filed.
  8. Generally assist the Trustee.
  9. Keep the Trustee informed of changes in mailing address, telephone number and email address for 12 months after discharge.
  10. Not engage in any business transactions, or obtain credit of more than $1,000, without disclosing to the other party(s) that you are an undischarged bankrupt.

If you have other questions regarding bankruptcy, you can contact us for a free consultation over the phone or in person in Saint John, Moncton, Fredericton or Charlottetown.  Powell Associates Ltd. is a licensed insolvency trustee focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses.