Only a Licensed Insolvency Trustee can file a voluntary assignment in bankruptcy for you.  You do not need a referral to a trustee; you can contact a bankruptcy trustee directly.  To provide you with some comfort, I have laid out the following steps to filing bankruptcy:

  1. Contact a local Licensed Insolvency Trustee to arrange an initial consultation. Most trustees have websites that you can review to familiarize yourself with the trustee or ask a trusted advisor (accountant, mortgage broker, realtor), family or friend for a referral.  The initial consultation is normally performed in person, but due to COVID-19, most trustees are offering telephone, video and in-person consultations. The initial assessment is typically free of charge.
  2. The trustee will review your financial situation in detail in obtaining personal information (name, address, etc.), a listing of your assets, liabilities, monthly income, and expenses. In advance of your meeting, gather all of your creditor statements and make a list of your monthly living expenses (rent, heat, telephone, food, etc.). If you do not have statements from your creditors, make a list of who you owe, the account number and the amount owing.
  3. The trustee will review if anyone else guaranteed or co-signed your debts, if you transferred any assets to another party in the last 5 years or if you made large payments to a specific creditor.
  4. The trustee will inquire about any garnishments of your income and the status of your tax filings.
  5. Be honest with the trustee in responding to their questions to ensure they can properly advise you of any potential issues.
  6. The trustee will review possible solutions with you, and if you decide to file an assignment in bankruptcy, they will set up another appointment for you to sign the documents. The trustee will make payment arrangements for either the minimum trustee’s fees or surplus income payments.
  7. The trustee will prepare statutory documents, including a Statement of Affairs and Monthly Income and Expense Statement, which will be signed by you.

Please feel free to reach out to us if you are struggling with debt and considering filing a personal assignment in bankruptcy.  We would be happy to follow the above process with you in a compassionate and non-judgmental manner.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)