Announcement – New Designation for Insolvency Professionals

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The Office of the Superintendent of Bankruptcy Canada released Directive 33, Trustee Designation and Advertising, updating the designation to be used by Licensed Trustees with regards to the advertisement, promotion, and communications related to their services.  All trustees will now adopt the professional designation “Licensed Insolvency Trustee”.

My Bank Account Is Always In Overdraft

Banks charge interest on overdraft account as high as 20%; this can be a costly form of credit. If you find that you are carrying an overdraft balance and running out of money between pay periods, this can be an early warning sign of future financial difficulties.

Is Bankruptcy My Only Option?

Bankruptcy is not the only debt solution option available to resolve overwhelming debt. Your Trustee (Licensed Insolvency Trustee) can also put together a consumer proposal to your creditors. Where you pay a portion of the debt, you owe your creditors, and the creditors write off the remaining balance of the debt.

Am I Responsible For the Debt of My Business?

If your business is incorporated, you may still have personal obligations for certain debts; debt that you personally guaranteed, director liabilities, unpaid wages. If you operate your business as a sole proprietor, you are personally responsible for all the debts of that business. If you are a partner in a partnership, you and your business partner are jointly liable for all the debts of the partnership, not just your own portion.

Can I Claim Bankruptcy a Second Time?

Yes, you can declare personal bankruptcy a second time, as long as you have been discharged from your first bankruptcy. If you don’t have surplus income, comply with your duties and cooperate with your trustee on other estate matters. You are eligible to be discharged from your second bankruptcy, after 24 months.

Does My Trustee Work For Me or My Creditors?

Your Trustee’s job is to administer your bankruptcy or consumer proposal following the Bankruptcy and Insolvency Act.

Will My Friends and Family Know I Went Bankrupt?

Personal bankruptcy and consumer proposal filings are a matter of public record and are kept on file with the Government of Canada through the Office of the Superintendent of Bankruptcy.  These records are accessible for a fee but how many people, other than Licensed Insolvency Trustee (bankruptcy trustee), would incur the expense or even think or know where to look?

Can Bankruptcy Deal With My Student Loans?

Individuals who file a personal bankruptcy or consumer proposal, at least 7 years after ceasing to be a part-time or full-time student, are released from paying their Canadian student loan debt.