The last people you want to meet when going through a bankruptcy in Ontario is your creditors, right? You know, the people who have been sending you notices, phoning you non-stop, garnisheeing your wages and generally making your life difficult.
What are the chances you will have to get face to face with people who definitely aren’t part of your fan club? The chances are very small. In our experience at Richard Killen & Associates, fewer than one in 100 personal bankruptcies will require such a meeting. The creditors have the option of requesting a meeting but rarely exercise this right, especially if yours is a “summary administration” (if your assets in a bankruptcy are valued under $15,000).
That said, there are two situations where a trustee must call a meeting of the creditors: If the Office of the Superintendent of Bankruptcy (OSB) tells the trustee to call one, or if creditors who are owed more than 25% of your total debt request one.
The main purpose of the meeting is to give your creditors a chance to learn all the ins and outs of your financial situation, and to give directions to the trustee on the administration of the estate, if they so choose. The creditors can also review the trustee’s preliminary report, review the OSB’s report, examine the proofs of claims of other creditors, vote on resolutions, perhaps appoint inspectors (to provide the trustee with direction and the authority to take certain actions) and so on.
While creditors can ask you questions about your finances, you don’t have to answer any queries that aren’t related to your financial situation past, present or future. You also have the right to bring a lawyer to the meeting, though this rarely done. The chairman (usually the trustee) keeps things on topic.
But, as we pointed out before, creditors aren’t quick to request meetings in consumer bankruptcies. They can usually find out what they need to know faster and easier by calling the trustee directly or sending him/her an email. Creditor meetings occur automatically in commercial bankruptcies, where the financial issues are often more complex and more creditors are involved.
While a meeting with creditors is nothing to look forward to, a meeting with Richard Killen & Associates will help you reduce your stress levels considerably. At your free consultation we will outline all your options, so you can meet your personal situation head on and take the first steps in getting your financial life back under control.