Bankruptcy in Ontario: It’s More than Just about Money, It’s about Honesty Too

The foundation and anchor of your Ontario bankruptcy case is primarily built on your honesty. At nearly every step of the proceedings, you’ll be required to sign certain statements or documents under oath. You’ll even need to sign your bankruptcy statement of affairs saying that the information it contains is true and accurate. As you fill out and affix your signature on legal forms, as well as answer the questions of bankruptcy estate administrators, you should keep in mind that being truthful means less trouble.

Honesty in dealing with your State of Affairs.

If you intentionally provide your Trustee with false information, it would make the entire bankruptcy process dishonest, and could potentially lead to the refusal of the Court to issue a discharge from your debts; or worse, you may be charged with committing a bankruptcy offence.

One example of dishonesty with a Trustee is not being forthright about certain assets to keep the Trustee from taking action against them. Your Trustee can only fill out the bankruptcy statements of disclosure with the information you provide, so avoid concealing assets at all costs.

Honesty in dealing with your Trustee.

Discussing your debt honestly with a Trustee can be really helpful and therapeutic. It’ll help shed your anxiety and worries to some extent. Also, being honest is the only way a Trustee can create realistic options for you to deal with your debt. With the guidance of a Trustee, you may even learn that filing or declaring bankruptcy in Ontario isn’t your best option as there are other alternatives, such as debt consolidation and the filing of a consumer proposal.

Of course, when restructuring your debt with the help of a Trustee, see to it that you give all the documents and information that are asked for. Withholding relevant facts and making false entries in your statement of affairs will only hurt your situation in the long run.

If you lie to your Trustee once and it gets you in hot water, you can be sure that you’ll eventually have a hard time finding a financial or legal expert who would be willing to work with you after that. When you consult with a bankruptcy Trustee like the ones from Paddon + Yorke Inc., you’ll realize that they only have your best interests at heart. Repay their dedication and spare yourself from further trouble by being completely honest and trustworthy.