Step by step!
1. Preliminary meeting
During the course of a free, confidential meeting, one of our bankruptcy trustee’s will analyze your situation and discuss with you the various solutions available.
2. Forms
At your first meeting, the trustee 
will complete the different forms and documents you will be required to sign.
3. Registering the bankruptcy and sending documents (DAY 1)
The trustee will send the documents to the official receiver who will register your bankruptcy . From that point on, your creditors will deal with your bankruptcy trustee.
4. Creditors’ meeting (DAY 20)
In most cases, there will not be a creditors’ meeting. In the event that one is required, you must attend along with your bankruptcy trustee.
5. 1st consultation (BETWEEN DAY 10 AND DAY 60)
The trustee assesses the situation and advises you on matters relating to financial management, purchasing habits and warning signs of financial problems, to help you avoid critical situations in the future.
6. 2nd consultation (BETWEEN DAY 30 AND DAY 210)
The trustee assesses the situation and discusses with you the causes of your bankruptcy and ways of avoiding them.
7. Discharge
Automatic discharge (9 MONTHS AND 1 DAY)
If this is your first bankruptcy, you have taken part in the two consultation phases, and no one has opposed the discharge, the trustee will issue a certificate that will discharge you of most of your debts, if you do not have a “seizable portion” of your salary (See Note 1).
Note 1: What is a seizable portion? In bankruptcy, a seizable portion is the excess of net salary over the poverty line. This calculation is adjusted according to the number of people in the family unit. The seizable portion table is determined annually by the Superintendent of Bankruptcy and can be viewed by clicking this link:
If you have trouble calculating this amount, do not hesitate to contact one of our professionals.
Should a portion of your salary be seizable, this automatic discharge will be deferred to 21 months from the date of your bankruptcy.
In the case of a second bankruptcy, the 9- and 21-month periods will be deferred to 24- and 36-months, respectively.
In the case of three or more bankruptcies, you will need to appear in Court.
Lastly, if your tax debt exceeds $200,000 and represents 75% or more of your total debt, you are not eligible for an automatic discharge and you will have to appear in Court.
Hearing
If you are not eligible for an automatic discharge, you must attend a hearing on your application for discharge at the courthouse. Various judgements can be rendered:
- Absolute discharge: you are discharged of all dischargeable debts, without further conditions.
- Suspended discharge: you will obtain your discharge at a time set by the Court, without further conditions.
- Conditional discharge: you will obtain a discharge only once you have fulfilled the conditions set by the Court, generally the payment of a stipulated amount within a set period of time.
- Denial of discharge: this is an unusual situation that only occurs in cases of serious fraud, repeated bankruptcies (more than twice) or serious failure to comply with the duties and obligations required by the Bankruptcy and Insolvency Act.
