What happens if Debtor Declares Bankruptcy?
Walk through the steps of what Openroom needs to update the Rental Debt File
Weiting Bollu
Last Update há 6 dias
Who this document is for:
→ Anyone using Openroom’s Rental Debt Ledger product. More specifically, as a Tenant whose Landlord claims they owe rent.
Subscription Plan
→ Anyone on the Openroom Community plan
→ Anyone on the Openroom Plus plan
What's the Bankruptcy Situation?
There may be situations where a Creditor reported a Rental Debt Ledger file with Openroom but the Debtor declares bankruptcy status afterwards through a Licensed Insolvency and Bankruptcy Trustee.
The Bankruptcy and Insolvency Act (BIA) is the primary federal law in Canada governing bankruptcy and insolvency proceedings. It outlines the rules and procedures for both personal and corporate bankruptcies, as well as proposals and receiverships.
The BIA aims to protect the rights of debtors, creditors, and other stakeholders involved in these processes, while also establishing the roles and responsibilities of trustees, the court, and other relevant parties.
You can read more about the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3).
As a Creditor (someone owes me rental debt), what do I do?
When you, as the Creditor, is owed debt and your Debtor as declared bankruptcy, you can choose not to do anything to notify Openroom. You are not obligated to do so as it's private information of the Creditor.
As a Debtor (someone owes me rental debt), what do I do?
As someone who owes rental debt to another party, the Creditor, you should share information with Openroom to let us know that you have declared bankruptcy.
Openroom updates your credit history file that we share with Credit Bureaus such as Equifax, to let them know that your file needs to be updated. In addition, we stop interest calculations on your file from the date that you've declared bankruptcy.
Information that we need to verify and update your file:
→ Creditor's Package with Stay of Proceedings
This package should have creditors on file that includes the Landlord as the Creditor.