When you file for bankruptcy, you assign a trustee to be your administrator (the person in charge) of the bankruptcy proceedings.
The trustee explains and guides you through the bankruptcy process including filing of all appropriate forms and paperwork.
The bankruptcy trustee will electronically file your bankruptcy with the government through the Office of the Superintendent of Bankruptcy within five (5) days. Each month the Bankruptcy Superintendent’s office sends a report to all credit agencies notifying them of your bankruptcy.
Once the bankruptcy is filed there is an immediate “stay of proceedings“, in which all proceedings against you will be stopped. The people you owe money to and unsecured creditors cannot:
- contact or harass you for payments or money,
- garnishee your wages,
- file any lawsuits against you,
- collect any money from you.
Secured creditors can still seize property that was put up as co-lateral but only if you fail to make payments on those particular loans e.g. cars and mortgages.