Bankruptcy in London

How do I file personal bankruptcy in London?  How does it happen?  What do I have to do?

1. Initial Consultation:
- meet with one of our professional staff in our London office to discuss your situation
- review the details of your financial situation and some personal details
- make the decision that personal bankruptcy is the right option for you (we will also discuss other options, including consumer proposals).
- complete an application form (you can download an application form here, or wait until we meet)

- set a date to sign the documents if all the information is received
- open a new bank account with a “new” financial institution as soon as possible to avoid any garnishee issues with your current creditors.

2. Sign the Bankruptcy Documents:
- the trustee efiles the paperwork with the government and you have made an assignment into bankruptcy
- the trustee will administer the file by doing the following:

1. contact all the creditors with the required paperwork
2. file income tax returns as required (any prior year(s) that might be outstanding and a return from January 1st to the date you filed the assignment)
3. receive proof of claims from the creditors and review them to ensure the information is correct about the monies they are owed
4. review statements submitted by yourself each month for surplus income
5. redeem any assets such as insurances, RSPs, property, or any other assets that have to be liquidated.  Every asset has to be reviewed and accounted for although some assets such as household effects, personal effects and many vehicles are allowed to be kept by you (exempt from seizure by the trustee)
6. prepare a report for your discharge outlining how much monies have been paid or received from yourself and redemption of assets, how much monies are still outstanding, any issues with the discharge process and your conduct
7. distribute any monies payable to your creditors
8. a final report to yourself and the creditors and the Official Receiver and the courts if necessary.

3. Duties of the Bankrupt:
Once you sign the documents, you are required to fulfill certain duties.  If you do not complete these duties, your discharge will be opposed and it may be necessary for you to attend court to get a discharge. A person who has filed bankruptcy previously is required in the London area to attend a discharge hearing.
The discharge is very important as it is the document issued by the trustee or the order issued by the court that says you have been released from the obligation to pay your creditors (some debts like support payments, fines, or student loans are not dischargeable.  Ask the professional at your first meeting if any of your debts will not be discharged).  Obtaining the discharge document is your goal in the bankruptcy process.

These duties may include but are not limited to:

1. hand over all credit cards to the trustee whether or not they have outstanding balances
2. payment of an administration fee
3. submission of monthly income and expense statements
4. payment of surplus income monies (these are monies that are paid on income earned above the level determined by the Superintendent of Bankruptcy for your household and are advised to you when you file for bankruptcy but determined from the monthly statements submitted)
5. submission of tax information required to file the tax returns as outlined above
6. completion of two counseling sessions which will talk about money management, budgeting, credit repair and how to avoid future financial difficulties and other similar issues
7. attendance at any meetings of the creditors or other meetings that require your attendance.

4. The Hoyes, Michalos & Associates Inc. Client Service Team:
At Hoyes, Michalos we do everything we can to assist you in obtaining your discharge.  This means that our team of over 20 people are available to help you through the bankruptcy process as there can be many questions that arise:

1. what do I tell my creditors who call after I have filed my assignment into bankruptcy?
2. how do I fill out my monthly statement?
3. what happens at court if I have to go for my discharge?
4. what if I forgot to tell you about a creditor?
5. what if I want to change a pre-authorized payment date?
6. what if my employer received a garnishment notice?
7. what if my bank account got frozen even though I opened a new one?

If you or someone you know is having financial difficulties, call me for a free consultation at 310-PLAN, or E-mail me your questions, and let’s get started.

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