How to File Bankruptcy

A Step by Step Guide to Declaring Bankruptcy in Canada & Getting Out of Debt


Acknowledge Your Debt Situation

The first step to declaring bankruptcy in Canada is to acknowledge that you are having a debt problem that you believe is to serious to work out on your own. Common signs of a serious money problem include:

  • Your credit cards are at, or over, their limits;
  • You are using one credit card to make the payment on other credit cards;
  • You are using credit card cash advances to pay monthly bills;
  • Collection calls demanding payment on your debt that you cannot make are becoming a nuisance;
  • You have received a legal action notice.

People that are struggling with debt have options. Your first step in getting out of debt is to explore all of the debt relief options available to Canadians. Declaring bankruptcy can help you get your fresh financial start!

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Only a personal bankruptcy or consumer proposal will provide immediate debt relief and protection from creditor harassment.

You are not alone: 125,878 Canadians became insolvent in 2016


Find a LIT (Licensed Insolvency Trustee) to Help You Understand Your Debt Relief Rights

A Licensed Insolvency Trustee (LIT) is the only debt relief expert in Canada who is licensed to administer to a bankruptcy filing or a consumer proposal. If you want to declare bankruptcy in Canada or make a legally binding proposal with your creditors you must use the services of a LIT.

The Trustee will help you understand the bankruptcy process, how you can reduce your debt by 70% with a consumer proposal, and other debt relief options.

When you choose a Trustee to work with ensure that:

  • You feel comfortable with the Trustee. Make sure you understand their answers to your questions;
  • Your Trustee to responds to your concerns in a timely manner;
  • You have access to your Trustee.

All trustees that are listed with Bankruptcy Canada are licensed by the Canadian government.

Find a Licensed Insolvency Trustee to Help You Get Out of Debt >>

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Licensed Insolvency Trustees are experts licensed by the Canadian government to help individuals get out of debt.

Only a LIT can help a consumer file for bankruptcy.


Schedule a Free Consultation to Meet Your Trustee to Discuss Your Options

Once you have found a Trustee you feel comfortable with you should contact their office to schedule your free initial consultation. This meeting is free and carries no obligation. In order to help your Trustee understand your situation, you should bring some details about your financial situation such as your income, assets, and debts.

This meeting is free and carries no obligation.

In order to help your Trustee understand your situation, you should bring some details about your financial situation such as your income, assets, and debts.

At the consultation meeting your trustee will review your financial situation and explain if an alternative to bankruptcy could work for your case.

The trustee will give you all the information and advice you need to make an informed decision about going insolvent.

Would you like to know more?

A short conversation with a professional Trustee can give you all the reassurance you need. A Bankruptcy Canada trustee will always provide you with the best advice for your situation.

* All of our trustees are licensed by the government and are diligent and professional debt relief experts.

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If your income is high enough you can explore an alternative to bankruptcy such as a consumer proposal.

Consumer proposals allow you to keep your home and other assets.


Declaring Bankruptcy

If you and your Trustee make the decision to proceed with the bankruptcy process, you will be provided with an information form to fill out.

The bankruptcy paperwork will include:

  • Your name, birthdate, address and other personal information;
  • A list of your creditors (your debts);
  • A list of your assets.

Once your insolvency trustee has the necessary information they will prepare the official paperwork you must sign.

When you are comfortable you will sign the bankruptcy forms and your bankruptcy will start.

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Most bankruptcies in Canada are over in only 9 months.
Once you receive your discharge you will have your fresh start.


What Happens After Filing Bankruptcy?

As soon as you have declared bankruptcy there will be an automatic “stay of proceedings” that will immediately provide protection from your unsecured creditors.

The stay of proceedings will stop wage garnishments, collection calls and any legal action against you to collect on your unsecured debt.

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Declaring bankruptcy will prevent most of your creditors from contacting you and will stop a wage garnishment.

Your Trustee will handle all communications with your unsecured creditors.


What About Life After Bankruptcy?

Once you have received your discharge from bankruptcy almost all of your debts will be erased. Your bankruptcy will remain on your credit report for at least 6 years, although it will be possible to begin rebuilding your credit immediately upon your bankruptcy discharge.

Most bankrupts will receive their discharge in 9 months after they have filed for bankruptcy.

This means that you will be debt free in 9 months and will have the ability to begin rebuilding your credit.

Want to get out of debt?

Schedule Your Free Consultation with a Local Licensed Insolvency Trustee 

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Insolvency gives a person a fresh financial start.

There is a debt free life after bankruptcy!

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