Bankruptcy Step 4: Trustee Notifies Creditors

• Introduction to bankruptcy in Canada
• Step 1 - Contact a trustee in bankruptcy
• Step 2 - Complete bankruptcy forms
• Step 3 - Trustee sells your assets
• Step 4 - Trustee notifies your creditors
• Step 5 - Creditors meetings if required...
• Step 6 - Examination by an officer of the OSB if required...
• Step 7 - You are required to attend two counselling sessions
• Step 8 - Trustee prepares your report to the OSB
• Step 9 - You attend a discharge hearing if required...
• Step 10 - You are discharged from bankruptcy
• The student loans hardship provision

Trustee notifies your creditors of the bankruptcy

Step 4: The trustee notifies your creditors of the bankruptcy.

The trustee will notify all of your creditors about your bankruptcy. Depending on the expected size of your bankruptcy estate and whether or not there are requests from creditors or the OSB, there may be a meeting of creditors.

All collection activity stops after trustee notification

There should be no collection activity after filing for bankruptcy. Creditors will stop calling once they are notified that you have filed for bankruptcy in Canada.

Within five days of your filing, your trustee will notify your creditors of your bankruptcy. Most trustees will mail the notice of bankruptcy to your creditors, so if it takes the trustee a week to mail the package, and it takes another week in the mail to reach the creditor, it may be two weeks before they are aware of your bankruptcy.

Many trustees are now faxing or even e-mailing bankruptcy notices to creditors, so the times noted above may be reduced.