Debt Relief Options
Personal Bankruptcy
in Canada
Bankruptcy is a legal process that eliminates eligible debts and provides a structured path to rebuilding your financial life. We'll explain all your options before you decide.
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After Discharge
$52,000 eligible debt
$0eligible debt remaining
1
File — collection calls stop immediately
2
Complete your duties & counselling
3
Discharged — as short as 9 months
A fresh financial start
All collection calls stop immediately
Eligible debts eliminated
As short as 9 months (first time)
All options explained — no pressure
Free Consultation
Book Your Free 30-Minute Consultation
Tell us a little about your situation and we'll be in touch within one business day.
Free Consultation
Book Your Free 30-Minute Consultation
Tell us a little about your situation and we'll be in
touch within one business day.
Confidential · No obligation · No judgment
What is Personal Bankruptcy?
A Legal Path to Eliminate
Debts You Cannot Repay
Bankruptcy is a legal process for eliminating your debts when they cannot be repaid. It involves a legal declaration of your inability to pay your debts to your creditors, due to insufficient income or assets to meet your obligations.
Filing for bankruptcy triggers an automatic stay of proceedings — which means collection calls, wage garnishments, and most legal action by unsecured creditors stop immediately upon filing.
Consider a Consumer Proposal first. Bankruptcy can be seen as a last option. A consumer proposal may allow you to keep more assets, settle for less, and has a shorter impact on your credit report. We'll always explain both options.
Key Considerations Before Filing
Your credit will be negatively affected for at least 7 years after completion
All credit cards will be cancelled upon filing
Non-exempt assets (car, home, investments) may need to be surrendered to the Trustee
Monthly income statements and payments to the Trustee are required
All collection calls and legal action against you will stop immediately
Covered Debts
What Debts Are Included?
Most unsecured debts are included. Secured debts attached to assets like a vehicle or house are generally not eliminated unless the asset is returned to the lender.
Credit Cards
Payday Loans
Personal Loans
Lines of Credit & Overdraft
Tax Debts (CRA)
Co-signed Debts
Vehicle Loans (if vehicle returned to lender)
Do I Qualify for Personal Bankruptcy?
You are at least 18 years old
You are insolvent — unable to pay your debts and owe at least $1,000 in unsecured debt
You reside in, do business in, or have property in Canada
You are not able to file a Consumer Proposal or Division 1 Proposal
Not sure if you qualify?
Book a free consultation and we'll tell you clearly — no commitment required.
During the Process
Your Responsibilities as a Bankrupt
We guide you through each requirement — nothing is done alone.
Surrender Credit Cards & Non-Exempt Assets
All credit cards must be surrendered. Non-exempt assets such as certain vehicles, property, and investments are turned over to the Trustee for your creditors' benefit.
Monthly Income Statements
You must submit proof of income to the Trustee each month for the duration of your bankruptcy. This helps determine your monthly payment amount.
Monthly Payments to Trustee
Payments are based on your income. You pay half of any income above the surplus income threshold — the amount goes up or down with your earnings during the bankruptcy period.
Two Financial Counselling Sessions
You must attend two one-on-one financial counselling sessions with our counsellor to help you build skills and habits for a stronger financial future after discharge.
How It Works
Four Simple Steps to Get Started
Getting started is simpler than you think. We handle the complexity — you focus on moving forward.
1
Fill Out Our Form
Takes 30 seconds. We'll contact you to schedule your free, confidential consultation.
2
Attend Consultation
We review your full financial situation and explore all debt relief options available to you.
3
Prepare Documents
We prepare all required documents. We may request proof of income, assets, and other supporting records.
4
Sign & File
Once you sign — in person or by video call — we file your bankruptcy and notify your creditors.
Know Your Options
Bankruptcy vs. Consumer Proposal
We'll help you understand which option fits your situation. Most clients are surprised to learn a Consumer Proposal is often the better fit.
⚠ Last Resort
Personal Bankruptcy
Credit affected for 7+ years after discharge
Non-exempt assets may be surrendered
All credit cards cancelled immediately
Payments vary with income each month
Collection calls stop immediately
✓ Often the Better Fit
Consumer Proposal
Credit affected for only 3 years after completion — credit score can rebuild quicker
Keep your assets — home, car, savings
One fixed monthly payment (no income tie)
Settle unsecured debt for a fraction of what you owe
Collection calls stop immediately
Learn about Consumer Proposal →Common Questions
Personal Bankruptcy Frequently Asked Questions
Straight answers to the questions we hear most often.
How long does bankruptcy take to complete?
This depends on your income and whether you have filed a prior bankruptcy. For a first-time bankruptcy, it takes from 9 to 21 months depending on whether your monthly income is above a certain threshold. For a second or third bankruptcy, the process takes from 24 to 36 months, also depending on monthly income.
How much does bankruptcy cost?
The cost depends on your monthly income. You are expected to pay half of any income above the surplus income threshold (based on your family size) to the Trustee. Payments may go up or down based on changes to your income during the bankruptcy period. We'll walk through the exact numbers with you in your free consultation.
What happens to my assets in bankruptcy?
In bankruptcy, you must surrender assets to the Licensed Insolvency Trustee for the benefit of your creditors. However, there are important exemptions — you may be able to keep a vehicle (up to a certain value), personal belongings, tools of your trade, furniture, and registered savings accounts such as RRSPs, RESPs, and RDSPs (except for contributions made in the 12 months prior to filing).
Will bankruptcy stop collection calls and wage garnishment?
Yes. Filing for bankruptcy triggers an automatic stay of proceedings under federal law. This means most collection calls, wage garnishments, and legal actions by unsecured creditors must stop immediately upon filing.
Can I switch from a Consumer Proposal to Bankruptcy (or vice versa)?
In some circumstances, yes. If a consumer proposal is annulled (e.g. you miss payments), it is possible to transition to bankruptcy. Similarly, if your situation improves, you may be able to convert from bankruptcy to a consumer proposal. We can advise you on the best path based on your specific circumstances.
Let Us Help You Leave Debt Behind for Good
Schedule Your Free Consultation Today
Confidential. No obligation. A Licensed Insolvency Trustee will review your full situation and explain every option available to you.
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