Bankruptcy in Canada


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What is bankruptcy and is it right for me?

Bankruptcy is a legal process that can provide relief to honest but unfortunate debtors. When you are in bankruptcy, no unsecured creditor can garnishee your wages or initiate any other collection action against you.

However, bankruptcies generally do not affect the rights of secured creditors, i.e., those who have a valid security against your property, such as a car or a house.

A bankruptcy can only be filed through a trustee in bankruptcy, an individual licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer the bankruptcy process.

Note: Your own bankruptcy does not affect the liability of anyone who guaranteed or co-signed a loan on your behalf. Your spouse, for example, may be accountable for liabilities incurred jointly with you. It is, therefore, important to make the trustee aware of joint liabilities.

Bankruptcy in Canada is occurring at an alarming rate

Bankruptcy is an option available when you are not in a position to repay a reasonable portion of your debt. The process relieves you of most debts, and legal proceedings by creditors generally stop.

A first bankruptcy can be completed in 9 months. Payments to the Trustee / CIRP are based upon your family income and the process and procedures would be explained to you during your free initial consultation with the Trustee / CIRP.

Most of your personal assets are exempt from seizure in bankruptcy, up to a maximum value amount for each type of assets.

Under the bankruptcy option the amount you pay is governed by the Bankruptcy Insolvency Act (BIA), based upon your unique situation.

Debit is too high and you need advice on bankruptcy?

If your financial problems are at the point where you would like some advice on bankruptcy, then please feel free to contact us. Our trustees will work with you to help make this difficult financial time as easy on you and your family as possible. Stop feeling overwhelmed by your debt and start on your path to financial freedom without claiming bankruptcy!

The procedures and legal consequences of consumer bankruptcy in Canada are governed by Canadian federal legislation.

Consumer bankruptcy is a legislative procedure under Bankruptcy and Insolvency Act ("the BIA")

  1. Complemented by provisions of federal and provincial legislation
  2. That allows an insolvent person, who cannot pay his debts and liabilities, and who assigns himself or petitioned by the creditors into bankruptcy, to surrender his property to a trustee in bankruptcy for the purpose of distribution among creditors in accordance with legislative priority of distribution scheme; and upon bankruptís compliance with bankruptcy procedures
  3. allows a bankrupt to be discharged (excused) from paying all or part of his debts and liabilities. The legislation may be complemented by regulations and Office of the Superintendent of Bankruptcy directives (OSB Directive(s)) (the latter provide guidelines to the trustees in bankruptcy on various aspects of the BIA).