Since 2004, we’ve helped thousands use bankruptcy as their solution to become debt free

About Bankruptcy

Bankruptcy is a legal proceeding that is available to a person or business who is coping with a financial crisis. One of the main purposes of bankruptcy legislation is to free a person who is hopelessly burdened with debt. A bankruptcy allows a debtor to start fresh and receive a new financial lease on life.

Bankruptcy is a sad economic fact of Canadian life. For the most part insolvency is not about money It is about circumstances in life. Today, approximately 90 per cent of all bankruptcies are consumer not business bankruptcies. Bankruptcy may be one of the most difficult decisions some people will ever have to make. It is not regarded as the easy way out — on the contrary it is often regarded as the only way out.

As a prerequisite to bankruptcy it is necessary for a person or business to be insolvent. To be insolvent simply means to:

  • Owe at least $1,000 in debts
  • Not be able to meet your debts as they are due to be paid.

The law allows for a formal process of declaring insolvency by filing either a consumer proposal or an assignment in bankruptcy. Declaring insolvency is a last resort for the overcommitted debtor because of the social stigma attached to this drastic measure and the detrimental effect on the bankrupt’ s credit rating. Bankruptcy may be the only alternative for individuals or families that do not have enough income to cover their regular living expenses and negotiate repay of their debts in full.

Bankruptcy allows an insolvent debtor to obtain relief from a financial crisis, with any non-exempt assets distributed in an orderly fashion among creditors.

Having reviewed your situation with our professional advocate you must now consider all your options and pick one that will work for you at this point in your life. This is not an easy task, but it must be done so you can move on and stop living a limited life under with your secret debt burden.

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Will my creditors stop harassing me?

Yes, they will. By law, all actions against a person who files for bankruptcy must cease once the documents are filed. This does not apply to secured creditors, such as bank holdings (for example, a loan on a car or a mortgage).

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Who will know that I have gone bankrupt?

Any legal filing of a bankruptcy is a public document that the general public has access to. The credit bureaus TransUnion and Equifax are notified. In the case of a first bankruptcy, the information will be recorded on your credit bureau report for six years from the date of the discharge.

For a second or subsequent bankruptcy, the information will remain for 14 years on the Equifax Bureau and for the rest of your life with TransUnion. However, this does not mean that credit cannot be obtained during this time. Re-establishing your credit rating after credit problems have been handled either through settlement or bankruptcy is the next step to gaining your future financial freedom.

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How much am I allowed to keep?

Property exempt from seizure when a person goes bankrupt is different in every province. To find out the details for your province, click the button below to talk to one of our certified credit specialists

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What don’t I keep?

There’s a formal list of items that MUST be included in a bankruptcy, and a list of things that CAN’T be included.  To get more info, click the “More Options” button below and ask one of our trained affiliates

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How do I go bankrupt?

Bankruptcy is a legal state and is done through the courts. It legally binds you, those you own money to, and the trustee who is the one representing you in court.  Everyone has rights and obligations as in anything brought before a judge.  Click the button below to talk to one of our people to get more details.

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When is the bankruptcy over?

For those people who have not been bankrupt before, an automatic discharge will take place after nine months. The discharge will only take place if the creditors and the superintendent of bankruptcy or trustee have not opposed your discharge.  You will also have to have received insolvency counseling.

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