An administrator of a consumer proposal is a trustee in bankruptcy.

In a bankruptcy, you must assign all your assets to the trustee, except for exempt property. Exempt property will vary from province to province. Your trustee can tell you what these are.

This is the Federal Act that regulates bankruptcy and proposal proceedings in Canada. It falls under the responsibility of the Office of the Superintendent of Bankruptcy.

This is a court in which a judge or registrar will decide on the bankrupt's application for discharge and other insolvency matters.

Your bankruptcy does not cancel the responsibility of anyone that has guaranteed or co-signed a loan on your behalf. For example, if your sister co-signed a loan for you, that sister would be liable to pay the loan in full even if you decide to file for bankruptcy.

A creditor is a person, institution or business to whom money is owed. Secured creditors are creditors who have taken some measure to protect themselves and hold a mortgage, pledge, lien or similar instrument on, or against, your property.

A debtor is a person who receives a loan or an advance of goods and services in exchange for a promise to pay at a later date.

Two income tax returns must be completed for the calendar year in which you become bankrupt. The pre-bankruptcy return covers the period from the beginning of the year to date of your bankruptcy. You will be required to provide your trustee with details and documentation to support this return. The post-bankruptcy return covers the period from the date of bankruptcy until the end of the calendar year.

Inspectors are appointed by creditors to represent them before the trustee during the administration of proposals and bankruptcies. They are expected to assist the trustee by virtue of their experience and are required to supervise certain aspects of the trustee's administration.

A person who is unable to meet financial obligations as they become due is insolvent.

Although legal actions or most garnishments against you stop on the date you declare bankruptcy or file a proposal, criminal actions and some civil matters, such as actions in matrimonial matters, are not affected by the bankruptcy or proposal.

Mediation is a way of resolving conflict between two or more individuals. In the course of a bankruptcy, the parties involved in a disagreement can agree to work with an impartial and independent person, called a "mediator', who will help them settle their dispute instead of going to court.

In bankruptcies mediation is available to resolve two types of disputes: i) disagreements over the amount of money the bankrupt will pay to the trustee for the benefit of the creditors during the bankruptcy (called surplus income); and ii) disagreements regarding the conditions that the trustee has recommended for a bankrupt's discharge.

The Official Receiver is a federal government employee in the Office of the Superintendent of Bankruptcy and an officer of the court with specific duties under the Bankruptcy and Insolvency Act.

Immediately after becoming bankrupt, you are no longer required to make payments to your creditors.

If you do not agree with the amount set by the trustee for your monthly payment of surplus income, the trustee must request mediation. If mediation does not resolve the disagreement, the trustee, under certain circumstances, will have to apply to court to have the matter decided.

Failure to make the required payments may affect your discharge.

One of the objectives of the Bankruptcy and Insolvency Act is to relieve you of pressure from your creditors. If you receive phone calls or letters from creditors, tell them that you are bankrupt, or have made a proposal, and refer them to your trustee or administrator of your consumer proposal.

The Superintendent of Bankruptcy is a federally appointed official who overseas the administration of the Bankruptcy and Insolvency Act in Canada.

A trustee in bankruptcy is a person licensed by the Superintendent of Bankruptcy to administer proposals and bankruptcies. The trustee represents your creditors and is an officer of the court. However, the trustee can give you information and advice about both the proposal and bankruptcy processes and make sure that your rights, as well as those of the creditors, are respected.

You must give all windfalls, such as lottery winnings and inheritances, occurring during the period of bankruptcy, to the trustee for distribution to your creditors.

A Chartered Insolvency and Restructuring Practitioner is a professional who has studied and articled in the area of Insolvency. Upon completing rigorous education in the area of Bankruptcy, proposals, liquidations, receiverships, agency appointments, corporate restructuring and various laws as they relate to Insolvency, like the Family Law Act, Business Corporations Act, Company Creditors Arrangement Act, and The Bank Act, is given the professional qualification.

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