Categories
Brandon Blog Post

HOW TO FILE BANKRUPTCY ONLINE: OUR KNOCKOUT STEP-BY-STEP GUIDE

File bankruptcy online: You can file bankruptcy online in Canada!

Can I file bankruptcy online in Canada? This is a question we’ve been getting a lot lately. And the answer is yes, you can file bankruptcy online in Canada; just not by yourself.

The only ones the federal government authorizes in Canada to do bankruptcy filings are licensed insolvency trustees. Since March 2020, the process for meeting with a bankruptcy trustee to discuss bankruptcy has changed and can be done online. This may be helpful if you’re considering bankruptcy for your individual situation.

In this Brandon’s Blog, I explain how, with the help of a licensed insolvency trustee, you can meet all the legal requirements and file bankruptcy online for the Canadian bankruptcy process.

Why you can file bankruptcy online in Canada

There’s virtually nothing you can’t do online these days. The lockdowns increased our reliance on online shopping for things like groceries, clothes, office supplies, and even toilet paper.

The internet also includes a wealth of knowledge on any subject you can think of, including financial topics. I find that anyone contacting me who is struggling with their, or their company’s financial problems, has already looked into the various options available to them in dealing with debts like income taxes and credit cards.

Although people may not be familiar from their online research with all the ins and outs of insolvency and bankruptcy, this is to be expected. However, callers are generally well-informed about different options for dealing with secured creditors and unsecured creditors.

Nowadays, people expect to be able to do everything online – including filing for bankruptcy in Canada. Those who think bankruptcy might be a solution for them, are curious to understand if they can declare bankruptcy online. Thanks to the COVID-19 pandemic, online everything is a way of life.

file bankruptcy online
file bankruptcy online

Why you should file bankruptcy online

The Canadian government oversees the administration of the insolvency process in Canada through the Office of the Superintendent of Bankruptcy Canada (OSB). The OSB is part of Innovation, Science and Economic Development Canada (Industry Canada). They ensure that consumer proposals, corporate financial restructuring and bankruptcies are handled in accordance with federal law. This process protects the rights of both debtors and creditors and helps to ensure a fair and orderly resolution to financial difficulties.

The OSB is responsible for administering Canadian bankruptcy law under the Bankruptcy and Insolvency Act (BIA), as well as certain duties under the Companies’ Creditors Arrangement Act (CCAA). They license and regulate the insolvency profession, ensure an efficient and effective regulatory framework, and supervise stakeholders. The OSB is independent of the Government of Canada in carrying out its regulatory, administrative, and supervisory duties.

As a result of the outbreak of COVID-19, the OSB issued guidance to Trustees on how certain aspects of the Canadian bankruptcy and insolvency process have changed. This document, entitled Temporary Guidance for LITS During the COVID-19 Pandemic, provides direction on how to navigate these changes.

As concerns about COVID-19 grew in Canada, licensed insolvency trustees took action to reduce in-person meetings. The OSB supported the Trustee community in these initiatives while maintaining the stability of Canada’s insolvency system.

Many of the same temporary measures remain in place today. Most clients find it more convenient and less stressful to continue filing for bankruptcy online. So how do we file bankruptcy online in Canada?

Assessing your financial situation and considering bankruptcy alternatives

No matter what form of insolvency process we are discussing to deal with a specific debt situation calling for either financial restructuring with a debt settlement payment plan through a consumer proposal or Division I Proposal, or personal bankruptcy, the process always starts in the same way. It’s not important what type of bankruptcy or insolvency process we’re talking about if we are dealing with a limited liability company or with someone considering bankruptcy for individuals.

When it comes to corporate insolvency, it’s important to have a clear understanding of the company’s current financial position and what its chances are for a successful financial restructuring. In consumer insolvency cases, the first step is to assess the debtor’s individual situation.

When a person contacts me to discuss their personal financial situation, we would have our initial chat. If the person wished to explore their available options in more detail, I would need to collect additional information from them to enable a proper assessment. Before we discuss which actual filing may be appropriate, it is important for me to know things like their assets and liabilities, their monthly income, and their household size.

If they would like me to continue our no-cost consultation and provide them with a proper assessment, I email them our standard intake form called the Debt Relief Worksheet. I ask them to please make sure to fully complete it and include any backup documents that are requested.

The backup documents we typically request are quite standard – a copy of their most recent bank statement, their last filed tax return, and the notice of assessment. Once I have a chance to review everything and ask any follow-up questions, I’ll be able to provide tailored advice based on their unique situation.

The counseling before filing bankruptcy that we give is perhaps even more important than any counselling sessions after filing. So far, we’ve been able to do everything over the telephone and online.

file bankruptcy online
file bankruptcy online

Is filing bankruptcy online an option for getting rid of debt?

Now that I have all the necessary information, I can perform the rest of the initial assessment. There could be several options available for those struggling with debt, and filing for bankruptcy may be an option for some. However, it’s important to understand the process and what it entails before making a decision.

Continuing with the online model, I meet with the person and do the rest of the assessment by phone or video meeting. I explain what I see as the realistic debt relief options for the person, explain why and discuss what is involved with each option and answer any questions they may have.

At the end of the meeting, I provide the person with a list of resources that can help them make their decision. I’m always available to answer any questions they may have throughout the process. Filing for online bankruptcy may very well be an option for getting rid of debt, but it should be the last option.

Something else to remember is that an insolvency proceeding will lower your credit score as it appears on your credit report. Declaring bankruptcy will have a worse effect than a debt management plan through a BIA-approved financial debt restructuring program repayment plan.

What documents do you need in order to file bankruptcy online?

To discuss what documents you need for a bankruptcy application in order to file bankruptcy online in Canada, we will assume that the person chose the bankruptcy option. By now, I have enough financial information to prepare all the necessary bankruptcy documents.

Examples of statutory bankruptcy forms which are part of the bankruptcy paperwork include the:

  • statement of affairs, indicating both the person’s eligible assets and those exempt from seizure under provincial law with related bankruptcy schedules;
  • list of creditors that is used for the creditor mailing list to send out the notice to creditors;
  • person’s statement of monthly income and expenses;
  • bankruptcy assignment
  • notice to bankrupt of their bankruptcy duties; and
  • estate information summary.

We schedule a video meeting with the debtor once all the statutory and financial documents are ready for signing. We can either email the documents or upload them to our secure signing portal and provide the debtor with a private, secure link. We’re happy to use online technology to have our meeting and explain all the documents, witness their signing, and get the signed documents from them.

We take the signed documents and file them in the Industry Canada OSB electronic online filing system. The OSB issues the bankruptcy certificate once the electronic filing is accepted. The day and time of the certificate is the exact moment the person is officially bankrupt.

file bankruptcy online
file bankruptcy online

Duties during bankruptcy include credit counselling sessions

The duties of a bankrupt person are set out in section 158 of the BIA. They include:

  • to identify all of their property and allow the Trustee or anyone authorized by the Trustee to take possession of all the debtor’s property;
  • to give the Trustee all books, records, documents and papers related to their property or affairs, including, but not limited to, title papers, insurance policies, and tax records and returns;
  • providing full disclosure of all assets and liabilities;
  • helping the trustee when required with assistance from time to time;
  • if one or more creditor meetings are required, you must attend; and
  • attending the two mandatory bankruptcy credit counseling sessions run by the Trustee.

We can meet with the bankrupt person over video meetings to provide counselling sessions and help them to fulfil their online bankruptcy duties.

Is it always going to be possible to file bankruptcy online in Canada?

The OSB has extended the option to conduct online service delivery of the Canadian insolvency options available under the BIA. Licensed insolvency trustees can continue to use online methods. It has provided some peace of mind for many people.

The OSB has been consulting with the insolvency community on potential amendments to relevant directives, with the goal of implementing an online alternative to meeting in person. While allowing flexibility, the changes they are contemplating would emphasize that while trying to be flexible, the changes being contemplated would emphasize that debtors will have the choice to either meet in person or online.

It looks like the OSB is warming up to the idea that remote filing through online resources, whether we are talking about BIA-approved debt repayment plans or bankruptcy may very well be here to stay. The OSB is trying to balance the benefit to debtors as well as the bankruptcy process continuing to be for the benefit of creditors. Can it all continue to be accomplished by online resources and technology? So far the average person, be they Canadian debtors or Canadian creditors, seem to want to continue with the choice of having insolvency administration online.

file bankruptcy online
file bankruptcy online

Are you deep in debt? We can help!

I hope you enjoyed this Brandon’s Blog on how to file bankruptcy online. Are you or your company in need of financial restructuring? Are you or your company unable to survive the COVID pandemic and its aftermath? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt. You are worried because you are facing significant financial challenges.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. We know that we can help you the way we take the load off of your shoulders and devise a debt settlement plan.

We realize that people and businesses in financial difficulty need practical advice and a workable solution in an easy-to-understand financial plan. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We can tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. If any of this sounds familiar to you and you’re serious about finding a solution, let us know.

Call us now for a no-cost initial consultation.

file bankruptcy online
file bankruptcy online

 

 

Categories
Brandon Blog Post

FILE BANKRUPTCY IN CANADA ONLINE: OUR COMPLETE GUIDE ON HOW TO FILE BANKRUPTCY ONLINE

We hope that you and your family are safe and healthy.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

File bankruptcy in Canada online introduction

People have been asking us recently, “Can I file bankruptcy in Canada online?”. The most honest answer is yes, just not all alone with your computer and internet connection. Doesn’t sound very definitive, does it? That is because you cannot file bankruptcy yourself.

The only one the federal government authorizes in Canada to do bankruptcy filings is a licensed insolvency trustee (formerly called a bankruptcy trustee or a trustee in bankruptcy) (Trustee). The process itself requires anyone experiencing financial problems either themselves or with their company, needs to meet with a Trustee for an initial consultation.

However, since the onset of the COVID-19 pandemic and the lockdowns that have accompanied it since March 2020, the way a Trustee meets with people considering bankruptcy has changed. It has essentially gone online given the current operating environment. I will explain what I mean and how it might help you with your individual situation.

Can I file bankruptcy in Canada online?

Virtually anything and everything can be done online. The lockdown has increased our use of online purchasing. Whether it is clothes, office supplies, or toilet paper, it can all be ordered online and shipped to our homes. The taxi industry has been under assault for some time now from both Uber and Lyft.

The internet also includes a wealth of knowledge on thousands of different subjects. Financial topics are no exception. I find that anyone contacting me who is struggling with their, or their company’s financial problems, debts and paying their bills, including credit card bills, have already looked online for information and help to try to recover for their financial future.

Although people may not understand everything about insolvency and bankruptcy with all its nuances, which is to be expected, callers are definitely more educated in options for help in dealing with their secured creditors, unsecured creditors and different types of debtsboth secured debt and unsecured debt.

So nowadays, everyone expects that you can do everything online, including the ability to file bankruptcy in Canada. This is true for people who think bankruptcy might be a solution for them. They are curious to understand if they can declare bankruptcy online. It is no longer just a bankruptcy in-person system.

file bankruptcy in canada
file bankruptcy in canada

How the coronavirus pandemic pushed bankruptcy online

The bankruptcy law in Canada is a federal statute. So the Canadian government supervises the administration of the insolvency process in Canada through the Office of the Superintendent of Bankruptcy Canada (OSB). On March 13, 2020, as a result of COVID-19, the OSB provided guidance to Trustees about how elements of the process for filing bankruptcy in Canada have changed. The document issued by the OSB is called Temporary Guidance for LITS During the COVID-19 Pandemic.

In that guidance, the OSB pushed the Canadian insolvency system as close to how can you file bankruptcy online. The only thing you still cannot do is file bankruptcy online yourself.

There was great growing concern in Canada about COVID-19. Insolvency practitioners had to take action to reduce in-person meetings. The OSB supported the Trustee community in these initiatives while keeping the stability of Canada’s insolvency system.

The OSB encouraged Trustees to make use of the considerable flexibilities that exist in the OSB’s Directives when determining which measures may be appropriate, in light of the pandemic.

To allow for the necessary social distancing, while still allowing people to file bankruptcy in Canada, the OSB advised the Trustee community:

  • Assessment of a person’s or company’s financial situationTrustees are allowed to make use of techniques besides in-person meetings. The OSB recognized the COVID-19 pandemic as a remarkable circumstance.
    • Trustees did not need to get separate approval to conduct assessments making use of techniques aside from in-person. Where a video conference is not feasible, evaluations and discussions about a person’s or company’s debt situation may be carried out through a mix of telephone discussion and email.
    • In these assessment meetings, we discuss various debt relief options and alternatives to bankruptcy to avoid bankruptcy. We talk about credit counselling sessions, debt consolidation, debt settlement, various financial management techniques. We even discuss is a debt consolidation loan a realistic prospect?
    • Then we move on to the insolvency remedies of a consumer proposal for financial reorganization and debt settlement, corporate financial reorganization, personal bankruptcy or corporate bankruptcy. Whatever is appropriate. Then we give the person our recommendations and help them pick the best solution for them. The aim is always to avoid bankruptcy, wherever possible.
  • Insolvency financial counsellingTrustees and the accredited credit counsellors in their office are allowed to give financial management counselling via video conferencing. The OSB also allowed for credit counseling over the telephone, when video conferencing is not feasible. That is how I have been doing each credit counselling session and it has been working very well.
  • Meeting of Creditors – The Chair of the meeting is now allowed to hold creditors’ meetings either by video or conference call. The Chair can count on the representations by those in attendance to confirm their identity. It is mainly the unsecured creditors who are interested in the meeting of creditors.
  • Oaths and Signatures: Filing for bankruptcy and the bankruptcy process, involves bankruptcy forms. We are now urged to trade bankruptcy paperwork using e-mail. Trustees also explain to anyone filing bankruptcy, be it personal bankruptcy or corporate bankruptcy, using video conferencing.
  • This also the case for a consumer proposal filing. So even though we are not sitting in the same room as the person, we give the debtor the required support to explain the bankruptcy forms by using Zoom, FaceTime or over the phone.

What I do for taking oaths is that I confirm the person’s name and ask them to hold up their birth certificate or driver’s licence to their webcam or mobile phone. I also watch them sign the official bankruptcy documents. Then, I ask them to scan everything, including the identification they used, email it to me right away and then put the originals in the regular Canada Post mail.

So far, this has worked quite well. It has allowed people to file bankruptcy in Canada even during a pandemic. It has worked so well, we are now helping people and entrepreneurs looking for debt relief options who otherwise could not travel to our office. They would not travel to see us in person because although they are in Ontario, they are not in the Great Toronto Area.

file bankruptcy in canada
file bankruptcy in canada

Trustees already use an online bankruptcy filing system

Once the Trustee receives the documents by email from the person, they then turn to the electronic online bankruptcy filing system. It is called the E filing system. The Trustee can upload certain computer files into the E filing system, to tell the OSB all the information it needs to issue the Certificate of Appointment.

It is the same system across the country, regardless of what province you are in when someone wants to file bankruptcy in Canada. When the OSB issues the Certificate, that is the moment when a person or company officially becomes bankrupt and the Trustee is appointed.

This same E filing system is used also for all filings. Things like a consumer proposal, corporate receivership and corporate restructuring filings are also uploaded through the same online portal.

File bankruptcy in Canada: The rest of the process is the same as before

Once the type of online bankruptcy or consumer proposal filing is made to help you with the debt solutions you need, the rest of the process is the same. How bankruptcies work in Canada from this point on is not really different, other than as stated above, the two mandatory counselling sessions are done by either video or telephone meeting. Also, the effect on someone’s credit report is the same.

To find out the information on how the overall process works when you file bankruptcy in Canada, take a look at my Brandon’s Blog – HOW TO FILE FOR BANKRUPTCY IN CANADA: PERSONAL BANKRUPTCY MODUS OPERANDI. That will give you a very good read on the entire process.

File bankruptcy in Canada online: A word of warning

A word of caution for you. Bear in mind at the beginning I told you that only a Trustee is licensed to do any insolvency filing in Canada. You should understand that to file bankruptcy in Canada or file a consumer proposal online in Canada with someone that is not licensed by the federal government as a Trustee isn’t a choice.

You must be aware of fake organizations, firms, or service providers that attempt to trick people right into believing they can do any kind of insolvency filing for you. This includes anyone wanting to file bankruptcy in Canada.

Sadly, there are many debt consultant bankruptcy scam artists that state that they can help you do a debt settlement for you for a fee. DO NOT think of them under any circumstances. All they do is charge you for the first bankruptcy assessment of a person’s financial situation that a Trustee will do for you at no cost.

Then they try to offer you more items that the state will certainly help improve your credit score. This may also include giving you a high-interest rate loan but holding back all the cash to make the monthly payments out of until gone. Then when they cannot sell you any more products, they walk you down the block to file with a Trustee either to do a consumer proposal or to file bankruptcy in Canada.

Do not fall for these scammers that make it seem like they can file bankruptcy in Canada for you.

File bankruptcy in Canada summary

I hope you have enjoyed this file bankruptcy in Canada Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.

You are worried because you are facing significant financial challenges and you think the only thing you can do is file bankruptcy in Canada. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. We know that we can help you the way we take the load off of your shoulders and devise a debt settlement plan.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. We help many people and companies avoid bankruptcy.

That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation.

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

We hope that you and your family are safe and healthy.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

file bankruptcy in canada
file bankruptcy in canada
Categories
Brandon Blog Post

#VIDEO – BANKRUPTCY INFORMATION ONLINE: WHAT EVERY CANADIAN OUGHT TO KNOW#

Is there bankruptcy information online?

There is a large amount of bankruptcy information online. Just go to the website of any Licensed Insolvency Trustee or bankruptcy lawyer. There is information about:

The Ira Smith Trustee website

On our website, you will find bankruptcy information online such as:

The other source for information online

You can also find relevant bankruptcy information online at the Superintendent of Bankruptcy Canada website.

To take action you have to take it offline

Once you have gotten the online information, to take action, you need to take it offline. It is not possible in Canada to file online yourself.

To file either a consumer proposal to make debt settlement or bankruptcy, you need to select a Licensed Insolvency Trustee. A Licensed Insolvency Trustee administers the insolvency process in Canada.

The 10 Step Program of the Canadian Insolvency System

  1. Meet with a trustee to talk about your personal situation and your options.
  2. Work with the trustee to complete the required forms.
  3. The trustee filing your consumer proposal or bankruptcy and notifying your creditors.
  4. You attend a meeting of creditors if required.
  5. You attend two counselling sessions.
  6. Subject to your provincial exemptions, the trustee sells your assets; you may also have to make surplus income payments to the trustee.
  7. In certain circumstances, you may have to attend an examination by an officer at the OSB.
  8. The trustee prepares a report to the OSB describing your actions during the bankruptcy.
  9. You attend the discharge hearing if required.
  10. Your discharge and then the trustee completes the administration.

This is why to take action in the Canadian insolvency system you have to take it offline

How To Take Action To Achieve Debt Settlement

If you’re in deep financial difficulties and are looking for a way out, there is help for you. You need help from experts in debt – professional trustees.

We are:

  1. regulated by the Canadian government, as are our fees;
  2. licensed and have undergone a background check by the RCMP;
  3. subject to a stringent code of ethics; and
  4. required to maintain our competence by completing ongoing mandatory professional development each year.

Are you an individual or company who feels your situation is hopeless? Ira Smith Trustee & Receiver Inc. can prepare and put in place the plan MADE JUST FOR YOU. The plan will free you from the burden of your financial challenges. With our help, you will go on to live a productive, stress-free, financially sound life.

Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can free yourself from debt.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

bankruptcy information online

Call a Trustee Now!