How Do I Declare Personal Bankruptcy in Nova Scotia?

Declaring personal bankruptcy is a significant financial decision. In Nova Scotia, it’s a legal process regulated by the federal government. Here’s how it works and what you need to know.

The Role of a Licensed Insolvency Trustee

If you’re considering declaring bankruptcy in Nova Scotia, your first step should be to consult a licensed insolvency trustee. These professionals are licensed by the federal government to administer bankruptcy proceedings.

Meeting with a trustee does not mean you’re committing to bankruptcy. They will review your financial situation and discuss all possible debt relief options. These could include budget restructuring, liquidating assets, consolidating your debts, filing a consumer proposal, or declaring bankruptcy.

The Benefits of Bankruptcy

Though it might seem like a drastic step, bankruptcy can offer several benefits:

  • It stops collection calls from creditors.
  • It halts garnishment and other legal actions against you.
  • It can eliminate your debts entirely.

The Bankruptcy Process in Nova Scotia

Should you choose to file for bankruptcy, your trustee will handle all aspects of the process. You’ll meet with them to sign legal documents (an Assignment in Bankruptcy), which they will then file with the Office of the Superintendent of Bankruptcy.

Once your bankruptcy has been filed, the trustee will notify your creditors. From this point on, the creditors must prove their claim against you to the trustee.

Your Responsibilities During Bankruptcy

During your bankruptcy, you’ll have several duties to fulfill:

  • Submit monthly income and expense statements with proof of income.
  • Attend two credit counselling sessions, where you’ll discuss budgeting and re-establishing credit.
  • Make the required contribution (including surplus income) to your creditors.
  • Provide your income tax information for any prior years not yet completed and the current year.
  • Surrender or buy-back any non-exempt or unencumbered assets.
  • Complete any other duties requested by the trustee.

The End of Bankruptcy: Discharge

At the end of your bankruptcy, you’ll be eligible for discharge. This means you are no longer responsible for the debts included in your bankruptcy.

Certain types of debts, such as support arrears, student loan debt less than seven years old, and debt obtained by fraud, are not dischargeable by bankruptcy. However, your trustee will discuss these details with you.

Declaring bankruptcy in Nova Scotia involves many rules and regulations. It’s crucial to consult with a licensed insolvency trustee to get accurate information on how these rules apply to your situation.

For more information or to schedule a consultation, contact us by phone, email, or text message.

Remember, if you choose not to deal with an issue, you surrender control over it. Take control of your financial future by seeking help with your debt issues.

If you’re struggling with debt, remember: You’re not alone, and there are options available to you. Bankruptcy might seem scary, but with the right help, it can be a path to a fresh start and a brighter financial future.


Declaring personal bankruptcy in Nova Scotia is a big step, but it’s not one you have to take alone. With the help of a licensed insolvency trustee, you can navigate the process with confidence and start on the path to financial freedom.

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