One of the most important elements of filing for bankruptcy is the proper execution of essential documents. Bankruptcy paperwork is handled by a bankruptcy trustee. These professionals guide individuals through the process of bankruptcy as required by the Bankruptcy and Insolvency Act (BIA). Understanding the paperwork your trustee will file in your behalf will help you provide the information your trustee needs. It will also help you as you work to rebuild your financial health.
The Assessment Certificate
To begin the bankruptcy process, debtors meet with a bankruptcy trustee to assess the situation and determine the best course of action. Items to be discussed include:
- The debtor’s assets and liabilities
- All monthly expenses and income
- Special family circumstances
- An exploration of options open to the debtor
- An explanation of terms used throughout the bankruptcy process
- Bankruptcy paperwork to be filed
Once this meeting has taken place, the trustee will provide an Assessment Certificate for the debtor to sign. Your signature indicates that you have met with a trustee and discussed your circumstances and options.
The Monthly Income and Expense Statement
During your meeting with the bankruptcy trustee, you will assist the trustee in preparing a document that provides proof of income and expenses. This bankruptcy paperwork will help the Office of the Superintendent of Bankruptcy determine your family financial situation and whether or not you have a surplus income.
The Statement of Affairs
Form 79, or the Statement of Affairs document, is a formal financial and legal document that certifies income, family size and situation, all debts, and any other information that is required by the Office of the Superintendent of Bankruptcy. This document is prepared by combining the information gathered in the Assessment Certificate and the Monthly Income and Expense Statement.
The Assignment of General Benefits of Creditors
The Assignment of General Benefits is a short, but very important document that is signed by the debtor. It is a legally binding contract that informs your creditors that you are willing to turn over all of your non-exempt properties and possessions to the bankruptcy estate to use to satisfy a portion of your debt.
Your bankruptcy trustee will help you as you work through this difficult and challenging financial time. The documents he or she helps you prepare will help the bankruptcy process move swiftly and allow you to move forward with a clean slate.