Steps in BC Bankruptcy
There are 7 steps in BC Bankruptcy:
Step #1 of 7: Consultation with the Trustee.
Call a trustee and set up a FREE confidential consultation. Please bring this filled out form to the first meeting with the trustee so the trustee has all relevant information and can give your the best information on your options. This meeting takes about an hour.
Step #2 of 7: Sign the Documents.
Take the time to think over and digest the information you received at the Trustee’s Office. If you decide to go ahead, phone the trustee’s office and set up a time to go back to the office to sign the documents. This meeting should take about 30 – 45 minutes.
Step #3 of 7: Your Trustee Notifies the Creditors.
The trustee will mail out the bankruptcy documents to your creditors within 5 business days of your signing the documents.
Creditors cannot take any action against you once you file. If any collectors or creditors phone you for money tell them you filed bankruptcy and refer them to your trustee.
Step #4 of 7: Budgets and Payments to your Trustee.
Each month you will send in your Statement of Income & Expenses, pay stubs and the required monthly payment to your trustee. The trustee will have provided you with the necessary forms. You must do this as part of your duties so that your Trustee can recommend your discharge.
Step #5: Two Financial Counselling Sessions.
The two financial counselling sessions are held at the trustee’s office.
The first counselling session is held within the 1st two months; the second one is held at the 7th month. You must take the two financial counselling sessions in order to be eligible for your discharge from bankruptcy.
Step #6 of 7: Your Trustee Recommends your Discharge.
At the eighth month, following your signing the bankruptcy documents, your trustee must report on how you conducted yourself before and during the bankruptcy. If you have conducted yourself properly and performed all your duties your trustee will recommend an absolute discharge from bankruptcy. The majority of bankrupts are discharged in nine months.
Final Step #7: You are Discharged.
Your Trustee will send you your Certificate of Discharge which will certify that all your eligible debts have been erased. The credit bureau will be notified and in 6 years the record of the bankruptcy will be removed from your credit report. If any former creditor tries to collect from you or says you still owe them money showing them a copy of this document will prove that you do not owe them any money.