When selecting your trustee, you should keep the following in mind:

Confirm they are licensed by the Superintendent of Bankruptcy (all trustees listed at Bankruptcy-Canada.ca are fully licensed).

Your trustee should be local or at least easy to access.

You should feel comfortable with your trustee. Ask them questions about your situation and make sure you understand their answers.

The following signs are typical of money problems that warn you to take action:

You have failed to make one or more payments on a mortgage or loan.

Your credit cards are constantly at their limit.

You are paying bills by taking credit card cash advances.

Your creditors have passed your account to collection agencies, who are now calling

You have received notice of legal action against you to collect the money you owe.

all of the above

In order to declare bankruptcy or file a consumer proposal vou must work with a Licensed Insolvency Trustee.

True or False

96,458 Canadians became insolvent in 2020.

True or False

filing for bankruptcy in Canada has some disadvantages:

It will lower your credit score and credit history to the lowest level for a minimum to six years from the time your bankruptcy is completed;

While most assets will not be affected by declaring bankruptcy, there may be some assets that will need to be surrendered or may mean your bankruptcy will have an additional cost;

you must provide the trustee with detailed income and expense information, and including your income tax information.

Upon successful completion of bankruptcy you'll be free of most unsecured debts, with a few exceptions. For instance, certain types of debts will still remain; these include child support, penalties, court fines, and student loans issued in the last 6 years.

True or False

A vehicle of limited value and a residence of limited equity can remain while bankrupt.

True or False

Bankruptcy provides these advantages: pick all that apply

Will usually be debt free in a 9 - 21 month period for a first bankruptcy;

Eliminates most unsecured debts (ie. Credit cards, loans etc);

Legal protection from your creditors (no judgements, wage garnishments);

You can declare a first time bankruptcy as long as you are a Canadian citizen and owe over $575.

True or False

Leasing is less expensive than a straight buy because the interest rate is always a lot lower.

True or False

The Bankruptcy Act has two purposes.List them.