A bankruptcy application must be made to the Court and where the debts owed are less than $100,000, the debtor will be referred to IPTO for the OA to consider his suitability for the DRS. He must be employed and earning a regular income. He must not be a sole proprietor or a partner of a business. He must not have previously been an undischarged bankrupt, have previously been on the DRS, or have entered into a voluntary arrangement with his creditors in the preceding five years before the date when he is being considered for the DRS. Do note that due to the CoVid-19 situation, changes have been made to the eligibility. Total loan amounts have to be between $60,000 to $250,000. Read more here (criteria may change going forward, contact us for for details).

Generally, the Plan should be completed within three to five years.

The OA may issue a Certificate of Failure. Thereafter, the debtor’s creditors may initiate fresh bankruptcy proceedings.

If a debtor is referred by the Court to IPTO, the hearing of the bankruptcy application will be adjourned for up to six months for the OA to assess his suitability for the DRS. IPTO will inform the Court, the debtor and the applicant-creditor of the outcome of the assessment before the end of the period of adjournment.

IPTO will devise and approve a debt repayment plan. The Court, the debtor and the applicant-creditor will be informed and the bankruptcy application against the debtor will be withdrawn. The debtor must then start making payments toward the debts owed under the terms of the Plan.