Who Filed For Bankruptcy

When Is A Bankrupt Discharged

There will be an automatic bankruptcy discharge for a first-time bankrupt nine months after they became bankrupt unless the trustee recommends a discharge with conditions or it is opposed by either a creditor, the trustee or the Superintendent of Bankruptcy. In addition, if you have surplus income of more than $200 per month, your bankruptcy will be extended to 21 months in the case of a first bankruptcy.

What Happens After I File Bankruptcy

Your stay of proceedings begins immediately after your bankruptcy is filed with the government. That means collection calls stop and your trustee can notify your employer to stop a wage garnishment if needed.

After filing, you stop making payments to your unsecured creditors and make your bankruptcy payments instead.

Read more: What debts are included in a bankruptcy?

Completion of Duties

Once you are legally bankrupt, you are required to perform the bankruptcy duties as outlined in Appendix I of the Act. The trustee will inform you of these duties but generally, they include making your bankruptcy payments, providing information about your monthly budget, attending two credit counselling sessions, and keeping the trustee notified of any material changes to your situation.

Meeting of Creditors

Generally, a meeting of creditors is not necessary but there may be instances where such a meeting will be held. . Creditors or the Official Receiver may request one after filing bankruptcy. If a meeting of creditors is called, you must attend this meeting. You may also be required to go to the Official Receivers office to answer several questions under oath about your financial affairs.

Examination with the Official Receiver

Famous People Who Filed Bankruptcy

And the list keeps growing.

They all used bankruptcy to get rid of debt,…and then got on with their lives.

Each of these famous people got the full benefit of filing bankruptcy…when they needed it.

Why not you?

Bad times come to all of us…even celebrities.

If someone that well off could get into financial trouble…it could happen to anyone.

If it could happen to anyone,…maybe you shouldnt be so hard on yourself.

These famous people were given a chance……to get rid of debt…to get rid of stress…to get back on track…and to start over fresh.

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Bankruptcy And State Court Lawsuits

If the lawsuit was already pending when the debtor filed the bankruptcy caseand it pertains to an issue other than a debt that will be discharged in the bankruptcy, as discussed abovethe parties have the option of choosing how to go forward. They can:

• dismiss the lawsuit
• ask the bankruptcy court for permission to continue the state court suit, or
• move the lawsuit to the bankruptcy court.

If the debtor filed for bankruptcy before the filing of a lawsuit, the parties can:

• file an adversary proceeding , or
• bring the action in another court after first getting permission from the bankruptcy court.

Weighed Down By Opioid Litigation Endo International Files For Bankruptcy

The generic drugmaker Endo International which faces thousands of lawsuits related to its alleged role in the opioid crisis, filed for bankruptcy late Tuesday morning, while announcing a plan to sell itself through a process administered by the bankruptcy court.

As part of its plan, Endo secured an agreement from creditors to acquire the firm through a $6 billion credit bid. Other potential buyers could make higher offers through a process the company will ask the bankruptcy court to administer.

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Go To Court To File Your Bankruptcy Forms

Once you enter the doors of your local courthouse, you will be greeted by security guards, who will ask you to pass through a metal detector. Once you pass security, you will go to the clerkâs office and tell the clerk that youâre there to file for bankruptcy. They will take your bankruptcy forms and your filing fee .

Do not submit your bank statements or tax returns to the court. These documents go to the trustee after the case is filed. Check out Step 7 below for more info on that.

While you wait, the clerk will process your case by scanning your forms and uploading them to the courtâs online filing system. This usually takes no more than 15 minutes.

Once done, the clerk will call you back to the front desk and give you:

• Your bankruptcy case number

• The name of your bankruptcy trustee

• The date, time, and location of your meeting with your trustee

At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. But youâre not home yet – there are other steps you need to complete to get a fresh start under Chapter 7 of the Bankruptcy Code!

Get A Free Debt Assessment

To start the bankruptcy process, first, you contact a Hoyes, Michalos & Associates licensed insolvency trustee who will assess your financial situation and explain the debt relief options available to you, including bankruptcy and alternatives to bankruptcy. After that, if you still want to declare bankruptcy, the trustee will help you complete several bankruptcy forms for signing. You are considered a bankrupt only when the trustee files the bankruptcy paperwork with the Official Receiver.

Rules pertaining to declaring bankruptcy and the bankruptcy process allow for filing a joint assignment. A joint bankruptcy assignment allows debtors, involved in a close financial relationship, to file for bankruptcy and to see their files dealt with as one file. This is available to debtors if their debts are substantially the same and the bankruptcy trustee believes it is in the best interest of the debtors and creditors.

Also Check: How To Declare Personal Bankruptcy In Quebec

Filing An Income Tax And Benefit Return

If an income tax and benefit return had to be filed for the year prior to the year of bankruptcy and you did not file it, the trustee must immediately file one on your behalf. The trustee must also file an income tax and benefit return for the period from January 1 up to the day before the date of bankruptcy this return is called the pre-bankruptcy return.

The trustee may also file an in-bankruptcy return to report income from liquidated assets or from businesses the trustee winds up for the benefit of creditors.

It is yourresponsibility to file an income tax and benefit return for the post-bankruptcy period, which is from the date of bankruptcy to December 31, if the trustee does not file one on your behalf.

When an income tax and benefit return is filed by you or the trustee for the year of bankruptcy, it is important to clearly indicate that it is a pre-bankruptcy, in-bankruptcy, or post-bankruptcy return above the “Identification” section on page 1 of the return. Trustees should not insert their own address in the “Identification” section when preparing any return on your behalf. The Office of the Superintendent of Bankruptcy already provides us with the contact information for all registered trustees on a regular basis.

Outlook: Cfos 4 Realms Of Risk

Large U.S. corporate bankruptcies had a very slow first half. But the pace of filings could pick up the rest of the year as higher interest rates, inflation, a global recession, and a likely growing inability to pass through higher costs eat away at margins and cash flows.

Such a scenario has been predicted before, but this time theres evidence to back it up.

Only 20 U.S. companies filed Chapter 11 in the first six months of 2022 , the lowest midyear total since 2014, according to data released Wednesday by Cornerstone Research. The total was also less than half the number recorded in the first half of 2021 and one-quarter of the 89 filings made in the first half of 2020.

Private company bankruptcies constituted 60% of all filings in the first half, up from the yearly average of 40% in the 2005 to 2021 period.

U.S. government stimulus programs, low borrowing rates, and high debt forbearance helped disrupt predictions of continued growth in the number of bankruptcy filings, said Nick Yavorsky, a report co-author and Cornerstone Research principal.

Mega Chapter 11s were also scarce in the first half, with only four filed, below the 2005-2021 half-year average of 11. The largest bankruptcy was the $10 billion-asset Talen Energy Supply in May. The power generation and infrastructure firm announced last week it was soliciting bids for a sale of the company in parallel with its ongoing financial restructuring.

Other industries may soon follow suit.

Read Also: How Long After Filing Bankruptcy Can You Purchase A Home

Attend Debtor Education Classes

You must complete post-filing education classes if your lenders discharge your debts. This guarantees youve learned how to manage your finances better based on your academic performance in the lessons and tests. Youll need to pay the class fee and earn the final certificate to complete your bankruptcy.

Who Will Know That I Declared Bankruptcy In Canada

There is no one cause behind most bankruptcies in Canada. Instead, most people end up filing for bankruptcy due to a combination of reasons, many of which are outside the control of the bankrupt individual. Thus, one should not be too ashamed of bankruptcy ends up being the only debt solution left because you do not qualify for another solution such as a consumer proposal or debt consolidation.

Human nature being what it is, however, people who find themselves having to file for bankruptcy are often embarrassed and want to make sure that no one knows about their financial troubles. This guide will help alleviate your concerns over how your bankruptcy is revealed to others.

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Do You Get Out Of All Your Debts If You File For Bankruptcy

Bankruptcy can renegotiate or erase many types of unsecured debts, such as on credit cards or personal loans. Other debts cannot be discharged in a bankruptcy, including:

The U.S. Bankruptcy Code lists 19 different categories of debts that cannot be discharged in:

• Alimony and child support
• Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years
• Debts for willful and malicious injury to another person or property
• Debts for death or personal injury caused by the debtorâs operation of a motor vehicle while intoxicated from alcohol or impaired by other substances
• Debts that you failed to list in your bankruptcy filing
• Common/maintenance fees for condo association

Negotiate With Your Creditors

Whether you appear in court or not, your creditors will sit down with you after you pay your fees and file all necessary paperwork. They will review your situation and determine how best to repay your debts. Any agreements made at this point will be legally binding, as the meeting happens under oath.

Also Check: Can They Take Your Home If You File Bankruptcy

Actions Not Related To The Debtor’s Debts Or Property:

• Criminal prosecutions. Filing bankruptcy won’t stop a criminal case.
• Divorce and child custody. Child custody cases and marriage dissolution matters will not be directly affected by a bankruptcy. The same is true for restraining orders and “peace bonds.” But, when a divorcing couple is ready to divide property, the bankruptcy court might have the jurisdiction to approve the property division when it concerns assets also involved in the bankruptcy case.

Denver Maker Of Backyard Ziplines Toys Files For Bankruptcy

A child plays on a B4 Adventure obstacle course.

B4 Adventure, a maker of backyard toys and games in Denver, has filed for bankruptcy and informed a judge that a sale or liquidation of the decade-old company could occur soon.

B4 filed for Chapter 11 bankruptcy Sept. 1. It owes more than $2.5 million to creditors, according to a partial list provided in its bankruptcy filing, which did not list the value of its assets.

The company was founded in 2011 by Ed OBrien III, a father of three who wanted children to be more active, according to B4s website. It is headquartered at 4010 Holly St.

B4 makes and sells backyard ziplines and obstacle courses for children, along with trampolines, swings and lawn games. It sells them at retailers and online in the U.S. and internationally on five continents, according to its bankruptcy paperwork.

B4, which has 15 employees, hasnt said why it is struggling. The company and its three attorneys with the law firm Onsager Fletcher Johnson did not respond to questions.

Attorney Gabrielle Palmer told a bankruptcy judge Sept. 1 that within 45 days, B4 intends to pursue parallel paths allowing it to either sell substantially all of its assets or obtain new investment capital. If it cant sell, B4 will pursue an orderly liquidation of its assets.

The company also settled a 2018 lawsuit alleging it infringed on patents for a swing. B4 contended that such an ancient technology cant be patented, but settled the next year.

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File Forms With The Court

Your next step is to file the forms with the court. This involves going to the courthouse and presenting your forms to the clerk. You cant expect legal help from the clerks, so make sure you have completed the forms according to the instructions.

After youve filed your petition, the court will appoint a trustee to oversee your case. The trustee will communicate with you by mail and, among other things, request copies of your forms.

What Factors Lead To Personal Bankruptcy Filings

Because filing a bankruptcy case can be a huge decision with long-lasting consequencespositive and negativepeople who are contemplating filing bankruptcy often want to know whether their reasons for filing are typical, reasonable, or sound.

A study published in the American Journal of Public Health reported that 66.5% of all bankruptcies were tied to medical issues. This includes medical debt itself in addition to the loss of income/wages from time off work. However, medical debt is far from the only reason people file for bankruptcy.

Other leading factors that contribute to bankruptcy filings include unemployment and domestic issues like divorce. Many of these factors involve circumstances the filer could not control.

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Can I Keep My House And My Car Under Canadian Bankruptcy Rules

Bankruptcy should not impact your secured debts, such as a vehicle lease or a mortgage, as long as you continue to make payments and there is no equity in your secured assets.

In most provinces, you do not lose your house or car when you declare bankruptcy. You can work out arrangements with your trustee and creditors to keep the asset and continue paying the mortgage or loan. Learn more about what assets you can keep in bankruptcy.

Being Discharged From Bankruptcy

When a debtor receives a discharge order, they are no longer legally required to pay the debts specified in the order. What’s more, any creditor listed on the discharge order cannot legally undertake any type of collection activity against the debtor once the discharge order is in force.

However, not all debts qualify to be discharged. Some of these include tax claims, anything that was not listed by the debtor, child support or alimony payments, personal injury debts, and debts to the government. In addition, any secured creditor can still enforce a lien against property owned by the debtor, provided that the lien is still valid.

Debtors do not necessarily have the right to a discharge. When a petition for bankruptcy has been filed in court, creditors receive a notice and can object if they choose to do so. If they do, they will need to file a complaint in court before the deadline. This leads to the filing of an adversary proceeding to recover money owed or enforce a lien.

The discharge from Chapter 7 is usually granted about four months after the debtor files to petition for bankruptcy. For any other type of bankruptcy, the discharge can occur when it becomes practical.

Since the early 1990s, bankruptcy has been used with increasing frequency by older individuals.

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Will I Lose My Property When Filing For Bankruptcy

The answer to this question depends in part on what type of bankruptcy you file for and what state you live in. Chapter 7 bankruptcy makes it more likely that you will lose at least some of your property than Chapter 13.

Let’s take a closer look at how these two types of bankruptcy differ.

What Does Discharged Mean

Discharged means your bankruptcy has ended you no longer have to pay your debts and you are able to apply for credit. However, if you do not complete your duties during bankruptcy, you will not get discharged, your trustee will close your file, and creditors can resume collection efforts against you. To learn more about how to get out of bankruptcy, read about how long bankruptcy lasts in Canada.

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