Credit Cards

How does the trustee know I have included all of my credit cards when filing my consumer proposal? Will they do a credit check??

Posted from: Ontario

One Response to “Credit Cards”

A licensed trustee said...

For the most part, bankruptcy is conducted on the honour system. Your trustee will ask you to sign a declaration stating that you’vve surrendered all of your credit cards when you file.

If later your trustee determines that you did not surrender all of your cards you will likely have to appear in Court and explain to the Court why they should allow your bankruptcy to proceed. In extreme cases I have seen the Court refuse to grant a discharge because the bankrupt did not disclose all of their debts and continued to use some of their credit…

Do you really want to risk it?