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Personal Bankruptcy Options

Bankruptcy is a legal process that provides financial relief when you can no longer repay your debts. You are discharged from your debts, meaning you longer have to pay them back.


Once you declare bankruptcy, you will be relieved from the harassment of those you owe money to and legal actions taken against you, meaning:

Creditors can no longer contact you

Your wages can no longer be garnished

Any active lawsuits are ended

Frozen funds are released

It is important to consider that while you may think being relieved from all of your debts is the quick and easiest way to get your finances back on track, filing for personal bankruptcy can have the most significant impact on your life. Our Licensed Insolvency Trustees at Crowe MacKay & Company are committed to working with you to review all the options available, such as a consumer proposal, before deciding to declare personal bankruptcy.

Do I Qualify for Personal Bankruptcy?

To be eligible for bankruptcy, you must be insolvent. There are several factors to consider when determining whether you are insolvent, including:

Residing, conducting business or owning property in Canada

Having liabilities greater than $1,000

Not being able to satisfy obligations as they become due

Having more debt than the value of the assets that you own

Although you may consider yourself insolvent, there may be other options besides bankruptcy. Your first step should be to contact us and meet with one of our  Licensed Insolvency Trustees in Vancouver.

How Personal Bankruptcy Works

Below is what you can expect when filing for personal bankruptcy:

  1. Getting to Know You
    First, you will work with one of our trusted professionals, who will review your current financial situation. This free consultation includes reviewing your current revenue and expenses (child/spousal support, medical expenses, child care costs, etc.) and your assets.

  2. Declaring Bankruptcy
    Once we determine your financial state, we will file the appropriate forms with the Office of the Superintendent of Bankruptcy (OSB). Once the OSB has accepted the forms, you will be in bankruptcy.

  3. Selling of Assets
    Your non-exempt assets will be assigned to us for resale to begin the repayment of debt to your creditors; this may include property acquired during your bankruptcy. Certain assets may be exempt from seizure, such as clothing, tools of the trade, cars, RRSPs, and your principal residence.

  4. Surplus Income Payments
    Depending on your income level, you may be required to make payments to us (your Trustee) for distribution to your creditors during your bankruptcy term.. These are called surplus income payments.

    Surplus income may arise if your household income exceeds the prescribed standard set by the OSB. This calculation varies depending on your family size and income.

  5. Term of Bankruptcy
    Bankruptcy terms vary but typically range between 9 and 21 months for first-time bankrupts depending on whether or not they have surplus income.

My Duties to Perform During Personal Bankruptcy 

If you have declared personal bankruptcy, you must fulfill specific duties to get discharged. Some of the essential tasks are:

Making the payment

Attending two counselling sessions

Reporting your monthly income and expenses

Disclosing all your property and provide documents requested by us (the Trustee)

Surrendering all non-exempt assets along with your credit cards to the Trustee

Upon completing all these duties, you will be eligible for automatic discharge. If you are not compliant with these activities or provide false information, you will face consequences.

Personal Bankruptcy FAQs

Schedule a Consultation to Discuss Personal Bankruptcy in Vancouver

Complete the following form, and one of our Licensed Insolvency Trustees will contact you for a free, no-commitment consultation to evaluate your financial situation.


If you require immediate assistance, please get in touch with us by phone at (604) 689 3928 or email at

Crowe MacKay & Company follows the practices laid out by the Canadian Anti-Spam Legislation and respects the privacy concerns of our clients and contacts.

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