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Bankruptcy Ontario - Declaring Dankruptcy in Ontario, ON

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Filing For Bankruptcy in Ontario

Personal bankruptcy in Ontario is governed by federal law, although there are some laws that are specific to Ontario, such as the exemptions that list the assets you can keep when going bankrupt.

This page is intended to help you understand how claiming bankruptcy could impact you and your financial situation.

Declaring bankruptcy in Ontario is a way to get your uncontrollable debt situation under control.

How to Declare Bankruptcy in Ontario

People can declare bankruptcy in Ontario if they live, work or own property in Ontario.

Debtors must owe more than $1,000 in unsecured debt and be insolvent to claim personal bankruptcy in Ontario.

Insolvent means you owe more than $1,000 and have assets insufficient to cover your unsecured debts.

People that owe $50,000 but have assets of $75,000 are not able to claim bankruptcy, because they would be able to cover their debts by selling their asset(s).

Bankruptcy Laws in Ontario

The bankruptcy process in Ontario is as follows:

  • Find a Licensed Insolvency Trustee near where you live,
  • Contact the Trustee to schedule a free confidential consultation to discuss your finance and options to get out of debt,
  • During your confidential consultation meeting the trustee will help you examine your income, debts and assets to determine if you are insolvent and meet the criteria for filing for personal bankruptcy in Ontario,
  • If, after meeting with your Trustee, you decide that receiving bankruptcy protection in Ontario is right for you, the trustee will work with you to prepare the necessary paperwork,
  • After your Licensed Insolvency Trustee has prepared the paperwork they will ask you to review it one more time before signing it,
  • Once you sign the paperwork, your Trustee will send it to the Office of the Superintendent of Bankruptcy (OSB),
  • Once your bankruptcy has started, your creditors will be notified,
  • You will have to complete your duties during the bankruptcy, including attending 2 financial counselling sessions with your Trustee,
  • After a set period of time (usually 9 months) and after you have completed all your duties as a bankrupt you will receive your discharge from bankruptcy.

Automatic Stay of Proceedings

One of the major benefits of bankruptcy is that you will receive an automatic stay of proceedings.

This means that you will receive legal protection from your creditors.

Collection calls, wage garnishments, foreclosure, and repossession orders will stop, while frozen bank account will become unfrozen due to your stay of proceedings.

Your creditors won't be able to collect from you in any way while you have the protection from your stay of proceedings.

Filing for bankruptcy can help you become debt free and give you peace of mind.

Is Bankruptcy For Me?

Before you decide to meet with a Licensed Insolvency Trustee in Ontario, you should have a good idea if bankruptcy or an alternative to bankruptcy your trustee can provide is the right solution for you to get out of debt.

The pros of filing for bankruptcy in Ontario is you will receive creditor protection and you will get out of debt, but there are some drawbacks, such as the impact on your credit rating.

How to File For Bankruptcy

Bankruptcy is a legal process in Ontario that can only be filed with the assisance of a Licensed Trustee.

Filing bankruptcy allows you to:

  • Receive protection from your creditors automatically,
  • Put an end to harassing collection calls,
  • Eliminate all of your eligible debts.

If you are considering declaring bankruptcy in Ontario the first thing you should do is contact a Licensed Trustee in your area.

Filing the Bankruptcy Paperwork

If you decide to proceed with bankruptcy, your trustee will be responsible for administering your bankruptcy.

You will meet with the trustee to sign your paperwork, and from there your trustee will file the paperwork electronically with the Office of the Superintendent of Bankruptcy (OSB), a division of the Canadian government that monitors all bankruptcies in Canada.

Duties During Your Bankruptcy

During your bankruptcy you will have to complete the following duties:

  • Submit copies each month of your income and expenses to the trustee,
  • Help your trustee compplete your outstanding tax returns, including for the year of the bankruptcy,
  • Attend two financial counselling sessions that will help you learn budgeting and money management skills so you can have a fresh financial start at the end of your bankruptcy,
  • Surrender any non-exempt assets you don't wish to buy back from your bankruptcy estate,
  • Make any required payments, including the minimum adminstration fee and any required surplus income payments,
  • Complete anything else your trustee requests of you.

Receiving Your Bankruptcy Discharge

Once you have successfully completed your bankruptcy period, you will be discharged from bankruptcy.

Your discharge is what releases you from the debts included in your bankruptcy.

Determing the Best Way to Get Out of Debt in Ontario

If you are considering claiming bankruptcy, the first thing you should do is to contact your local Bankruptcy Canada Licensed Insolvency Trustee to speak about your available options to get out of debt.

Our friendly insolvency team will help you determine the best way for you to get out of debt.

In some cases, filing for bankruptcy in Ontario will be the best option and if so, we will help you understand the entire process of going bankrupt.

In other cases, we can help you explore other debt solutions that will work better for you.

We can help with several other debt relief alternatives to your debt problems, such as:

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In order to see if filing bankruptcy in Ontario is right for you, you need to meet with one of our debt experts for a free consultation.

Your debt problems can be over

You should seek professional debt help if:

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  • Your bills are constantly piling up
  • You are using credit for your day to day living expenses
  • You have no money management skills
  • Creditors are taking collection actions against you
  • You are struggling to make a workable budget
  • You struggle to make the minimum payments on your debts
  • You are stressed because of your overwhelming debt situation
  • You're avoiding the issue

When you are struggling with debt and looking for a way to get out of debt, it can be challenging to know who to turn to and what to do next.

Fortunately there are several solutions to you, including filing for personal bankruptcy.

At Bankruptcy Canada we are experienced and knowledgeable debt experts who can help you get out of debt in a way that fits your unique financial challengings.

With the help of our friendly debt relief team we can explore all of your debt relief options.

To learn more about personal bankruptcy, please contact us today through our online form or by calling 877-879-4770 today!

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"I was looking for a way to get out of debt. I met with a bankruptcy trustee from Bankruptcy Canada who was able to explain all of the options available to me. After meeting with the trustee I finally saw a way out of debt!" Joe - Collingwood, ON


All of the Licensed Insolvency Trustees of Bankruptcy Canada are members of CAIRP (Canadian Association of Insolvency and Restrucuring Professionals).
CAIRP is the governing body that advocates for the insolvency (bankruptcy and consumer proposal) process in Canada.