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:

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:

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:

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