If you are thinking about filing for bankruptcy there is only one professional who provides bankruptcy services in Canada. That professional is called a Trustee in Bankruptcy. You cannot file a bankruptcy through a lawyer, an accountant or on your own. You must use a Trustee in Bankruptcy.
To give you a little background, the Bankruptcy and Insolvency Act is the statute that regulates bankruptcy laws in Canada. It also governs the Office of the Superintendent of Bankruptcy, a federal agency that supervises the administration of the Bankruptcy and Insolvency Act.
The Office of the Superintendent of Bankruptcy in turn licenses trustees to administer both bankruptcies and proposals. As an officer of the Court, the trustee has many duties and also an obligation to look after the rights of both the creditors and debtors. The trustee does not make the bankruptcy rules but is there to ensure that everyone follows the rules that are in place already.
If you are unable to pay your creditors filing a bankruptcy may be a solution for you. Once your bankruptcy is filed your creditors cannot continue or commence any action to collect their debt. Filing a bankruptcy is a formal way of dealing with your debts and is legally binding upon your creditors. There are other informal ways of dealing with your debts but they are risky because they are not legally binding and you are not protected from any collection activity.
If you feel that you are facing a financial crisis then call us. Hoyes Michalos & Associates is a licensed Trustee who provides bankruptcy services. We would be happy to meet with you at one of our many offices to review your situation and explain all of your options to you. Call our office at 310-PLAN (7526) or email us to book your free consultation.