Bankruptcy In Canada

How soon will the creditors know about my bankruptcy?

You and your creditors will be sent a package within 5 working days after your date of bankruptcy. Creditors will receive their notice at approximately the same time you receive yours.

What if I continue to get calls from my creditors?

Tell them that you have filed for bankruptcy and that Leon Miller Group Inc. is your Trustee. Give them our phone number, (780) 455-7100.

What if I “find” another creditor?

Send us a copy of the statement (or name and address) of the forgotten creditor and we will send them a package. Only debts incurred before the date of bankruptcy can be included.

What if a collection agency says they have not been notified of the bankruptcy?

Tell them that the Trustee notifies the creditor only and that the collection agency will have to get the information from the creditor they are working for. The collection agency is not your creditor; they only work for your creditor. You can give the collection agency our name and phone number.

When will the bills stop coming?

You can expect the bills to come to you for approximately 2-3 months. Just throw the bills in the garbage if you have listed the debt on your statement of affairs. It often takes time for the notice of the bankruptcy to filter down to the collection department.

What if I am not able to get my Income & Expense statement in on time?

Send the statement in as soon as possible with a reason for filing late.

What if I receive threats of legal action against me?

Phone the creditor and tell them that you have filed for bankruptcy with Leon Miller Group Inc. Once you file for bankruptcy, your creditors cannot proceed with legal action.

What do I do if my secured creditor wants me to sign new papers?

You must not sign any new agreements until you have received a “release” letter from the Trustee. Continue making regular payments on your mortgage and vehicle but do not sign any new agreements until you receive the release letter. Cease payments on your household goods until the creditor “proves” their claim. When you receive a release letter from us, you must deal with the creditor directly if you wish to keep the secured asset. If you do not wish to keep the asset, you must contact the creditor to arrange a time for them to pick up the asset after you receive our release letter.

Which tax returns will Leon Miller Group Inc. be filing?

For the year that you file for bankruptcy we will file a pre-bankruptcy tax return (from the 1st of January to the date of bankruptcy) and a post-bankruptcy tax return (from the date of bankruptcy to December 31). We will also file a return for the year prior to bankruptcy if it has not already been filed.

What if I used my RRSP’s for the Home Buyers Plan?

Any funds that were supposed to be repaid in the year are considered taxable RRSP income at the end of the year if they have not been repaid. Any taxes owing prior to the date of bankruptcy because of non-repayment will be written off. However, funds required to be paid back during the year the bankruptcy was filed, must be claimed in the post-bankruptcy period and may result in taxes owing, taxes which will be your responsibility. For all future years, the amount you must repay becomes payable before the end of the year or it will be treated as income received in that year. You should receive an assessment by November of each year informing you of your future obligations.

When will I get a copy of my tax returns?

Copies of tax returns and assessments will be sent with the copy of the Trustee’s Application for Discharge (approximately 3 months after you receive your discharge). If you require a copy earlier in order to apply for subsidies, let us know.

Can I make major expenditures for new assets during bankruptcy?

Every case is different. If you are spending over $500 for replacement of an asset, discuss the matter with your Trustee.

After I sign the documents and attend the counselling sessions, what further involvement will I have with the Trustee’s office?

In most cases if you are filing statements and making your payments, you will not have further contact with the Trustee’s office unless you fail to turn over assets or forward tax information. No news is good news! Your discharge will be processed automatically.

What if I receive substantial income from insurance proceeds, inheritances, wage adjustments or windfalls?

These extra funds are the property of your creditors. They have to be reported to the Trustee and will be paid to your creditors. Any surplus, after your creditors are paid in full with interest and the Trustee’s fees are covered, will be refunded to you.

When do I receive my Discharge Certificate?

No news is good news! If you don’t hear from us and there is no Court date set, you will receive an automatic discharge 9 months after your date of bankruptcy. Your certificate will be mailed to you by the middle of the month following your discharge.

What types of changes in my circumstances should be reported to the Trustee in writing?

Change in address or phone number

Change in the number of dependents

Change in marital status

Change in employment status

These changes can be shown on your monthly Income and Expense statements.