Tuesday, August 2, 2016

What to Tell a Licensed Personal Bankruptcy Trustee in Toronto

bankruptcy trustee

Before you file for bankruptcy or a consumer proposal in Toronto, a licensed personal bankruptcy trustee will first need to make an assessment of your financial situation. This initial consultation is usually a free service and will help you decide whether filing for bankruptcy is right for you or another debt repayment option is the better course of action.

Two things are accomplished during this initial consultation:

1.         The Trustee will be able to look at your financial situation thoroughly, then inform you of all your options for paying off your debts and counsel you on the best steps to take to solve your debt problem.

2.         You have the opportunity to ask questions about all options that are available to you and to fully understand the consequences of each option before you make a decision about your financial future.

During the assessment meeting, you’ll need to divulge important details and release certain documents to help the Trustee understand your situation fully.
Some documents you’ll need to bring on the day of your meeting include the following:

-        A detailed list of all your debts, including statements, invoices, letters from creditors or other documents to validate the amount of each debt.

-        A detailed summary of all your assets, including your house or other properties, cars and any investments such as RRSPs and RESPs

-        Your latest pay stub to show your most recent income and deduction information

-        A detailed list of your monthly expenses
You’ll also need to disclose important details about your life that impact, or may potentially impact, your financial situation. Some of these details can be:

-        Marriage, separation or divorce. If you’re entering into a marriage with a boatload of bad debt, your Trustee can advise about how to keep both of your credit histories separate. A recent separation or divorce may make you liable for debts incurred during the marriage. If you disclose that a separation may happen in the future, your trustee can explain who is responsible for debts in a separation or divorce.

-        A medical condition. Your Trustee has to know if you have any medical condition that may put your ability to earn at risk, which in turn may affect your ability to make payments and fulfill the terms of the bankruptcy or other payment option you choose.

-        Employment changes. Whether you are starting a second job, or you just got a raise, or you lost your job, your Trustee has to know all your sources of income so he can recommend the best solution that is most affordable for you.

When you enter into a legal process, such as bankruptcy or a consumer proposal, it's extremely important that you disclose all important facts to your Trustee. Any undisclosed information could complicate or lengthen your bankruptcy.  At the very least your bankruptcy discharge may be delayed, or at worst you could be charged criminally if your omission is proven to be fraudulent.

Keep in mind that when you work with a licensed personal bankruptcy trustee in Toronto he is there to help you, counsel you and to uphold your rights. So, it’s not a good idea to keep anything from him. Work with your Trustee instead, and make sure that he has all the relevant information he needs to give you the best possible chance to start a new debt free life.

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