Declaring Bankruptcy in Saskatchewan

Declaring Bankruptcy in SaskatchewanBankruptcy is a legal process designed to provide relief to individuals and businesses struggling with unmanageable debt. This article delves into the specifics of declaring bankruptcy in Saskatchewan, a province in Canada. We’ll explore the process, the role of a bankruptcy trustee, legal requirements, costs, and alternatives, among other details.

Understanding Bankruptcy

Bankruptcy is a federally regulated process overseen by the Office of the Superintendent of Bankruptcy (OSB). It’s designed to help debtors, unable to pay their debts, start afresh while ensuring creditors receive as much repayment as possible.

“Bankruptcy does not mean the end of financial life, but a chance to start anew.”

It’s important to note that while bankruptcy can provide a fresh financial start, it also comes with significant consequences, such as a severe impact on your credit rating.

Role of a Bankruptcy Trustee

A key player in the bankruptcy process is the bankruptcy trustee. The trustee is a licensed professional trained to help individuals unable to pay their debts. Their primary obligation is to ensure creditors receive as much as possible from the debtor’s property.

The trustee’s role includes:

  1. Providing information on various debt relief options.
  2. Discussing whether bankruptcy is an appropriate solution.
  3. Acting as an intermediary between the debtor and creditors.
  4. Ensuring all legal requirements are met during the bankruptcy process.

Finding a Bankruptcy Trustee

Bankruptcy trustees in Saskatchewan can be found in various ways:

Bankruptcy trustees charge a fee for their services, and many offer free initial consultations. However, a trustee may decline a case if the debtor doesn’t have sufficient assets to cover the trustee’s fees.

Understanding Costs of Bankruptcy

The cost of declaring bankruptcy in Saskatchewan varies depending on individual circumstances. The trustee assesses the debtor’s financial situation to determine their qualification for bankruptcy and the expected cost.

Legal Assistance in Bankruptcy

While most bankruptcies do not require a lawyer, complex cases involving matrimonial claims, businesses, or family farms may need legal assistance. The trustee should be able to determine the necessity of a lawyer in resolving your bankruptcy. If needed, you can use the Law Society of Saskatchewan Finding Legal Assistance database to find a lawyer.

Bankruptcy Duration

The duration of bankruptcy varies. For first-time bankrupts, it may not exceed nine months. However, if the trustee determines that surplus income payments are required, the bankruptcy could last up to 21 months. In cases where the discharge is opposed, the bankruptcy court decides the conditions of discharge, making these cases more complicated and unpredictable.

Economic Growth and Debt in Saskatchewan

Economic growth generally contributes to a higher standard of living and increased job opportunities. However, it can also lead to an increase in consumer debt, as seen in Saskatchewan. As of Q2 2022, the average consumer debt in Saskatchewan was $50,390, higher than the national average of $46,577.

The Process of Declaring Bankruptcy in Saskatchewan

Declaring bankruptcy in Saskatchewan involves the following steps:

  1. Contact a Licensed Trustee: The first step is to find a licensed bankruptcy trustee.
  2. Initial Consultation: The trustee will assess your financial situation and discuss your options.
  3. Filing of Documents: If bankruptcy is determined to be the best solution, the trustee will file the necessary documents with the OSB.
  4. Asset Handling: All non-exempt assets will be sold to repay the creditors.
  5. Meetings with Creditors: If necessary, the trustee will arrange meetings with the creditors.
  6. Financial Counseling: The debtor will have to attend two financial counseling sessions.
  7. Discharge: The debtor will be discharged from bankruptcy upon meeting all obligations.

Exemptions in Saskatchewan Bankruptcy

Despite declaring bankruptcy, Saskatchewan law allows you to keep certain assets known as exemptions. These include:

  • Household furnishings up to $4,500.
  • Tools and equipment necessary for work up to $4,500.
  • Home equity up to $32,000.
  • One motor vehicle necessary for a trade or business.
  • Clothing for the family.
  • Required medical devices.
  • Registered retirement savings plans, excluding the last twelve months’ worth of contributions.

Pros and Cons of Declaring Bankruptcy in Saskatchewan

Before declaring bankruptcy, consider the following pros and cons:


  • The majority of your debts are eliminated.
  • Debt collection efforts cease.
  • You receive financial education to prevent future bankruptcies.
  • You are allowed to keep some assets.


  • Bankruptcy severely impacts your credit rating for seven years.
  • You may have to surrender a significant portion of your property.

Exploring Alternatives

Bankruptcy should be considered a last resort. Other debt relief solutions, such as credit counselling and debt settlement, can help manage debt without the severe impact on your credit rating. It’s recommended to explore all your options before deciding on declaring bankruptcy in Saskatchewan.


Declaring bankruptcy in Saskatchewan is an important decision that can significantly impact your financial future. It’s essential to fully understand the process and consequences before proceeding. Always seek the advice of a licensed bankruptcy trustee or a debt relief professional when considering bankruptcy.

Remember, financial difficulties can happen to anyone. There’s no shame in seeking help.

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