Once you’ve filed for bankruptcy, there are duties you must uphold during the process. These include the following:
Disclose any information to the Licensed Insolvency Trustee regarding your assets and liabilities.
Surrender all of your credit cards to the LIT.
Report your monthly income and expenses.
Provide details to complete your income tax returns.
Each month you’ll be required to submit a copy of your pay stubs and any other proof of income to the LIT. Based on your income, you might have to make monthly payments to your LIT, which are called surplus income payments. The LIT will calculate your surplus income based on the materials you submit and tell you how much you’ll have to pay. Surplus income is the portion of your income that exceeds a standard number set by the Office of the Superintendent of Bankruptcy (OSB). The surplus income payments are based on your family size, and the larger your household, the higher the basic standard allowance for income will be.
You will also have to attend two credit counselling sessions. These credit counselling sessions are mandatory when you choose bankruptcy as a debt relief option in Canada. The goal of these two credit counselling sessions is to assist you with moving forward from financial difficulty. You’ll learn about making smart financial decisions, as well as set future financial goals.