Decided to file Bankruptcy
Question: When the decision has been made to file bankruptcy, and I am only in the first stage of filling out the paperwork, and payments are coming due. Do I call the creditors and tell them I am filing bankruptcy? My concern is creditors attempting to access my bank account for their payment and it is not there. Both myself and the creditors will suffer the nsf charges, me twice. What should I do?
Thank you.
Answer: Once you decide to file bankruptcy in Canada, you should open a new bank account at a new bank (a bank where you don’t owe any money). Have your payroll and other income transferred to your new account, and notify your on-going bills that you will continue to pay, such as your rent and utilities, about the new account. Do not tell any of your creditors about the new account. Once everything is switched over, you can simply close your old account. If the account is closed, no-one can take money from it, and there will be no NSF charges.
Your creditors may add an NSF fee to the balance you owe them, but that will be included in your bankruptcy.
In most cases a new bank account and the bankruptcy paperwork can be prepared in a week or less; your bankruptcy trustee can provide you with more information.