Occasionally bankruptcy is your only option.
A Bankruptcy should be considered only when there are no “other options” available. The Bankruptcy process is a formal form of restructuring and is filed under the Bankruptcy and Insolvency Act.

A Bankruptcy (depending on your surplus income) for a first time Bankrupt is from 9 months to 21 months and second time bankruptcy from 24 months to 36. Alternatively, you can file as many Consumer Proposals as you want without having more severe consequences for the insolvencies.

Bankruptcy Highlights
  • You are required to fill out monthly income and expense reports during your Bankruptcy
  • You are required to attend two counseling sessions
  • You cannot be a Director of an incorporated company
  • You may lose income tax refunds during your bankruptcy
  • You will not receive any GST /HST quarterly cheques during your Bankruptcy
  • You cannot obtain any credit as an un-discharged Bankrupt
  • The Bankruptcy remains on your credit rating for 7 years at an R9
Bankruptcy Benefits
  • Most wage garnishments cease immediately
  • Collection agencies can no longer contact you
Bankruptcy Process
  • Through this process a bankrupt is required to give full disclosure of all their assets, liabilities, income and expenses as well as any business holdings as part of the process.
  • You must be insolvent to file a Bankruptcy (debts are more than assets)
  • You cannot pick and choose the debts that are included
  • You cannot eliminate support or alimony obligation
  • You cannot eliminate student loans under 7 years
  • You cannot include secured debts such as mortgage and car loans as long as keep it paying monthly payment to them.
  • You are allowed to keep certain assets based on Provincial legislation