The Bankruptcy and Insolvency Act requires that an insolvency proceeding be filed in the “locality of the debtor.” The locality of the debtor means the principal place where the debtor has carried on business or resided during the year immediately preceding the bankruptcy filings. Thus, if you live in Hamilton, your personal bankruptcy will be filed with the Office of the Superintendent of Bankruptcy (“OSB”) in Hamilton.
The OSB issues Directives that must be followed by Licensed Insolvency Trustees in the administration of bankruptcy and proposal filings. The Assessment of an Individual Debtor directive requires a Licensed Insolvency Trustee to personally meet with each debtor and provide an assessment – explain the merits and consequences of options, the rights and responsibilities of the debtor, effect on garnishments, taxes, possible outcome of discharge, responsibility to contribute surplus income if applicable and required counselling. Due to the COVID-19 pandemic and with the health and safety of debtors in mind, the OSB relaxed the requirement of in-person assessments and has temporarily allowed trustees to perform the assessments virtually. The OSB is currently investigating whether to allow virtual assessments to continue.
Pursuant to the BIA, a meeting of creditors and mediation of surplus income may be held at the local OSB office. The meetings and mediation are currently being held virtually, but the debtor and trustee may be required to attend these meetings in person.
If there is an opposition to your discharge (by creditors or the trustee if you fail to complete all of your duties), the hearing will be held at the court appointed in your locality. Hamilton discharge matters will be heard at the Hamilton court, London matters are heard in London and Toronto matters are heard in Toronto. The local trustees are comfortable in dealing with their local courts.
There are many statutory duties required in a bankruptcy – submitting monthly Income and Expense forms, submitting tax information, attending counselling sessions, paying trustees fees or surplus income payments, etc. Many people are quite comfortable in submitting all this information electronically. Others like to physically attend the trustee’s office to see who they are dealing with and to hand in the document/make a payment in person.
Based on all the above factors, unless you have a specific referral to a trustee, it makes sense to me to deal with a trustee that has an office located in the locality where you reside. Taylor Leibow Inc. would be happy to meet with any debtor virtually or in person at one of our 5 locations.
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)
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