How Do I Declare Personal Bankruptcy?

Declaring Personal Bankruptcy in Canada

If you’ve got debts that have spiraled out of control, then it’s important to look at your options.

When faced with debt in Canada, declaring bankruptcy could be the best solution to help you become debt-free.

But if you’ve never been through the process before, filing bankruptcy can be a confusing process.

If you’ve ever wondered ‘how do I declare personal bankruptcy?’, then the following information could help you out.

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How do I declare personal bankruptcy in Canada?

There are processes you need to follow to be able to declare bankruptcy in Canada.

Bankruptcy must be filed through a Licensed Insolvency Trustee, who will be able to assess your present circumstances and complete the necessary processes to make bankruptcy possible.

Filing bankruptcy can be an effective debt solution for many reasons:


  • It will put protection in place so that you no longer have to deal with creditors;
  • Prevent legal action such as wage garnishment;
  • It will help you take care of your debts to help you get debt-free.


If you’re exploring filing bankruptcy in Canada, then the first step is to consult an insolvency trustee who will assess your circumstances and help you decide if bankruptcy is the right solution for you.

Bankruptcy and paperwork

After making the decision to declare bankruptcy, your Licensed Insolvency Trustee will take care of the necessary paperwork and file it with the Office of the Superintendent of Bankruptcy.

Your bankruptcy begins once the paperwork is filed, and your creditors will be notified.

This will stop contact from the creditors, who can then make a claim through the trustee for payments that are due to them.

What will you need to do during your bankruptcy?

There are certain guidelines you need to follow as part of your bankruptcy, including:


  • You will need to provide details of your taxes to your trustee so that they can file any outstanding returns on your behalf;
  • You will need to submit monthly statements and pay information to demonstrate your income;
  • Attending two credit counselling sessions arranged by your trustee;
  • You will need to make payments to your bankruptcy estate, as well as additional income;
  • You will need to surrender your non-exempt assets to help pay your estate.


Your trustee may have other duties or conditions that you need to meet as part of your bankruptcy term.

Getting discharged from bankruptcy

You will be discharged from bankruptcy at the end of your term.

Once this happens, you’ll no longer have to pay the debts owed to your creditors.

The length of your term will depend on whether or not you’ve had previous bankruptcies, as well as whether or not you’ve had to make additional payments.

You’ll also need to have adhered to the terms of your bankruptcy as set by your trustee.

Declaring bankruptcy is not something to be taken lightly.

It will have a significant impact on your credit rating, and can take a long time to recover from.

By consulting with a Licenced Insolvency Trustee, you can get all of the information and advice you need about bankruptcy.

Get in touch with our team today, and let us help you start your debt-free journey.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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