How Do I Go Into Bankruptcy?

People may either go into bankruptcy voluntarily or involuntarily.

Most people will go bankrupt voluntarily, although a small percentage of people will be forced into bankruptcy by the Court.

There are two ways a person can go into bankruptcy.


The first and more common way is to have the person make an assignment in bankruptcy (i.e., voluntarily go into bankruptcy).

The second, and rarely used, way is for creditors to ask the court to make an order that a person is bankrupt.

In both these cases, a trustee in bankruptcy is required to administer the bankruptcy and you will need to make an appointment to see one.

You can contact a Licensed insolvency trustee by calling 1-877-879-4770 toll free and in confidence or find a local trustee in your area.

Tips For Going Bankrupt

Here are the steps in a bankruptcy:

  1. Call a trustee at 1-877-879-4770 and set up a FREE confidential consultation. This meeting takes about an hour.
  2. Take the time to think over and digest the information you received at the Trustee’s Office. If you decide to go ahead, phone the trustee’s office and set up a time to go back to the office to sign the documents.

    This meeting should take about 30 – 45 minutes.

  3. The trustee will mail out the bankruptcy documents to your creditors within 5 business days of your signing the documents. Creditors cannot take any action against you once you file.

    If any collectors or creditors phone you for money tell them you filed bankruptcy and refer them to your trustee.

  4. Each month you will send in your Statement of Income & Expenses, pay stubs and the required monthly payment to your trustee. The trustee will have provided you with the necessary forms.

    You must do this as part of your duties so that your Trustee can recommend your discharge.

  5. Two financial counselling sessions are held at the trustee’s office. The first counselling session is held within the 1st two months; the second one is held at the 7th month.

    You must take the two financial counselling sessions in order to be eligible for your discharge from bankruptcy.

  6. At the eighth month, following your signing the bankruptcy documents, your trustee must report on how you conducted yourself before and during the bankruptcy. If you have conducted yourself properly and performed all your duties your trustee will recommend an absolute discharge from bankruptcy.

    The majority of bankrupts are discharged in nine months.

  7. Your Trustee will send you your Certificate of Discharge which will certify that all your eligible debts have been erased. The credit bureau will be notified and in 6 years the record of the bankruptcy will be removed from your credit report.

    If any former creditor tries to collect from you or says you still owe them money showing them a copy of this document will prove that you do not owe them any money.

Meeting with the trustee.

Before you meet with the trustee, he or she will likely ask you to fill out a form setting out your pertinent financial information.

This makes the meeting more productive.

The meeting lasts approximately an hour.

The trustee or an administrator will review the debtor’s financial information, explain any options, explain how bankruptcy or a proposal works, and answer any questions.

This meeting is free.

The meeting is non-judgemental and pressure free.

If there is an emergency such as a garnishee order in place that will take a portion of a person’s pay cheque, the trustee can get a bankruptcy or an intention to file a proposal in place in a matter of a few hours.

The bankruptcy or intention to file a proposal will stop the wage garnishee.

What happens next?

The debtor usually thinks things over a day or two before making up his mind.

Once he decides to go bankrupt he will phone the trustee office and tell them he wishes to proceed.

It only takes a day or two for the trustee to prepare the documents.

The debtor will go to the trustee’s office and sign the documents.

The trustee will immediately file the documents with the office of the Superintendent of Bankruptcy.

The debtor is bankrupt when the documents are filed.

Stay of proceedings.

There are a number of immediate advantages for a person assigning himself or herself into bankruptcy because of the Stay of Proceedings that goes into effect immediately upon the bankruptcy being filed.

The Stay of Proceedings protects the person filing bankruptcy as follows:

  • Unsecured creditors are not allowed to take any collection action.
  • Wage garnishees are stopped.
  • Bank account attachments are stopped.
  • Phone calls from creditors are stopped.
  • Repossessions are stopped.

Before you make the decision on declaring bankruptcy, you should make sure you have explored all alternatives to bankruptcy that could be available to you.

Bankruptcy is intended to give you a fresh start and clear your debts like your credit cards, payday loans, and income taxes owed, although some debts such as child support, alimony, and court fines won’t be cleared.

Once you’ve gone bankrupt and finished your case the bankruptcy will remain on your credit report for several years, although you can begin rebuilding your credit score.



Get Your Free Consultation With a Licensed Debt Relief Expert Now!

Find out how you can quickly get out of debt by setting up a free consultation with us today.

Get out of Debt and have family bliss and happiness

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Legally Cut Your Debt By 80% And Stop Interest Charges

Stop Interest Charges Immediately
Unfreeze Bank Accounts
Stop Wage Garnishment
Stop Legal Actions

I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.