On the day you sign your bankruptcy paperwork you will be required to “swear” before a Commissioner of Oaths that the information contained on your Statement of Affairs is true and complete. To do that, you must disclose various information to your bankruptcy trustee, including the following information about:
- what you own
- what you owe
- specific personal information
- certain transactions
What You Own
You must disclose all of your assets, including real estate, motor vehicles, investments, and household goods and furnishings. In most cases your trustee will require supporting documentation, such as your most recent RRSP statement, or a house appraisal.
What You Owe
You will also disclose all of your liabilities (a fancy word for “who you owe money to”). Your debts will include credit cards, bank loans, taxes, student loans, and anyone else to whom you owe money.
Necessary Personal Information
You are also required to disclose basic personal information, including your:
- full legal name
- birth date
- marital status
- monthly family budget
- number of people in your family; and
- whether or not you have operated a business in the last five years, with details
Certain Credit and Asset Transactions
In addition, you are required to disclose whether or not, in the last year, you have
- sold or disposed of any property;
- made any payments in excess of regular payments to creditors; and
- had any property seized by a creditor.
If any of the answers are “yes”, you are required to provide details.
You must also disclose, whether or not in the last five years, you have:
- sold or disposed of any property; and
- made any gifts to relatives or others in excess of $500.
Again, you must give details. You must also disclose if you have ever filed bankruptcy or a consumer proposal. You will also be asked to give reasons for your financial difficulties.
All of those questions deal with the past. You will be asked one question about the future:
“Do you expect to receive any sums of money which are not related to your normal income, or any other property within the next 12 months?” This question is designed to determine if you are expecting, for example, an inheritance, which would have an impact on your bankruptcy.
While these questions are detailed, for most people they are relatively easy to answer, and can be recorded in a few minutes. Your bankruptcy trustee will walk you through the entire process, and is available to answer any questions you have about what you are required to disclose prior to filing bankruptcy.