Bankruptcy - Money Problems - Victoria BC - Trustees - Debt Solutions - Debt - Questions - Solutions - Choose a Trustee - Bankruptcy Victoria

Creditors Calling? Financial problem or can't pay your bills?

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization).

Bankruptcy in Canada is set out by federal law, in the Bankruptcy and Insolvency Act and is applicable to businesses and individuals. The office of the Superintendent of Bankruptcy, a federal agency, is responsible for ensuring that bankruptcies are administered in a fair and orderly manner. Trustees in bankruptcy administer bankruptcy estates.

If you are having trouble paying your bills and you live in Victoria British Columbia, then you might want to consider contacting a reputable bankruptcy lawyer or a trustee in bankruptcy like CE Craig and Associates. Finding a trustee in bankruptcy who is interested at looking at your particular circumstances to make educated and intelligent suggestions is crucial in your time of need. We suggest you find someone like CE Craig (http://www.cecraig.com/) who you can trust to fight for your rights! As someone who needed to declare bankruptcy, you will be surprised how quickly the creditors stop calling and life gets back to normal when you have someone working for you! Stop the hassles and stop the stress by finding out what your options are!

Duties of trustees

Some of the duties of the trustee in bankruptcy are to:
  1. Review the file for any fraudulent preferences or reviewable transactions
  2. Chair meetings of creditors
  3. Sell any non-exempt assets
  4. Object to the bankrupt's discharge
  5. Distribute funds to creditors

Creditors' meetings

Creditors become involved by attending creditors' meetings. The trustee calls the first meeting of creditors for the following purposes:
  1. To consider the affairs of the bankrupt
  2. To affirm the appointment of the trustee or substitute another in place thereof
  3. To appoint inspectors
  4. To give such directions to the trustee as the creditors may see fit with reference to the administration of the estate.

Consumer proposals in Canada

In Canada, a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors.

A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors. Even though most proposals call for payments of less than the full amount of the debt owing, in most cases, the creditors will accept the deal, because if they donít, the next alternative may be personal bankruptcy, where the creditors will get even less money. The creditors have 45 days to accept or reject the consumer proposal. Once the proposal is accepted the debtor makes the payments to the Proposal Administrator each month, and the creditors are prevented from taking any further legal or collection action. If the proposal is rejected, the debtor may have no alternative but to declare personal bankruptcy.

A consumer proposal can only be made by a debtor with debts in excess of $5,000 to a maximum of $75,000 (not including the mortgage on their principal residence). If debts are greater than $75,000, the proposal must be filed under Division 1 of Part III of the Bankruptcy and Insolvency Act. The assistance of a Proposal Administrator is required. A Proposal Administrator is generally a licensed trustee in bankruptcy, although the Superintendent of Bankruptcy may appoint other people to serve as administrators.

In 2006, there were 98,450 personal insolvency filings in Canada: 79,218 bankruptcies and 19,232 consumer proposals