Bankruptcy
Bankruptcy is a legal process for eliminating your debts when they cannot be repaid and involves surrendering any non-exempt assets to the Licensed Insolvency Trustee. It includes a legal declaration of your inability to pay your debts to your creditors, due to insufficient income or assets to meet your debt obligations. You must surrender your assets to the Licensed Insolvency Trustee, unless they meet certain exemptions under the Bankruptcy and Insolvency Act.
Is this option right for me?
Bankruptcy can be seen as the last option when you have no other way to pay off your debts. A consumer proposal should be considered before filing for bankruptcy.
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Your credit will be negatively affected
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All your credit cards will be cancelled
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Assets you own such as car, house and investments may be impacted
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All collection calls and legal action against you will stop
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Interest on your debts will stop
What are my responsibilities?
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Surrender all credit cards and certain assets
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Send your proof of income to the Trustee every month
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Monthly payments to the Trustee depending on your income
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Attend 2 counselling sessions, 30 minutes, 1 on 1 with our financial counsellor
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Provide information to file tax returns
Eligibility
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You are insolvent, which means that you are unable to pay your debts and owe at least $1,000 in unsecured debt
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You are not able to file a Consumer Proposal or Division 1 Proposal
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You must either reside in, do business, or have property in Canada