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What Are the Bankrupt’s Duties?

Have you wondered what are the bankrupt’s duties? While in bankruptcy an individual has duties that they must comply with in order to obtain a discharge allowing them to be released from bankruptcy and their obligation to repay debt. Allan Marshall & Associates Inc will review and explain any duties a bankrupt is required to perform or comply with during a bankruptcy.

Bankrupt’s duties

The following are some of the common duties:

  • Attend two financial counselling sessions;
  • Deliver all credit cards to Allan Marshall & Associates Inc to be destroyed;
  • Prepare and deliver monthly income and expense reports; • Pay surplus income to the trustee for the benefit of creditors (if applicable) Surplus income will be clearly explained at the initial consultation.
  • Advise the trustee of any windfalls received during the bankruptcy. (Example: Lotteries, inheritances)
  • Supply the necessary information to file income tax returns.
  • Notify the trustee of any changes in address, phone number or email
  • Generally be honest and co-operative

What assets can I keep in bankruptcy?

There is a group of assets defined in Federal and Provincial legislation that are protected as exempt assets.

Although most of the exempt assets are defined by provincial legislation there are common exempt assets between the provinces. Please refer to the following links to view your specific provincial list of exempt assets and provincial limits.

Most provinces allow an exemption for the following items:

  • Food, clothing fuel necessary for a debtor and their family
  • Furniture, household furnishings and appliances (Check provincial limits)
  • Tools of trade or assets need to earn an income (Check provincial limits)
  • Personal motor vehicle required for work or medical reasons (Check provincial limits)
  • Child tax benefits • Necessary medical aids and devices (Check provincial limits)
  • Pets belonging to the debtor (Verify your provincial lists and limits) • Pension Plans
  • RRSP’s with the exception of contributions made in the 12 months preceding the date of bankruptcy.

PLEASE NOTE: All exemptions are subject to valid liens against the property.

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Mark Marshall BBA, C.I.R.P, L.I.T

Mark has been working in the Insolvency field since graduating from the University of New Brunswick with a degree in Business Administration (BBA). In 2012 Mark received his Chartered Insolvency & Restructuring Professional (CIRP) designation and attained his license as a Licensed Insolvency Trustee (LIT) in 2013.