Filing for bankruptcy does not have to be a scary process. In fact, the act of declaring bankruptcy is a positive step towards eliminating overwhelming debts.

Bankruptcy in Canada must be filed through a Licensed Insolvency Trustee. The trustee’s role in the process is to act as a sort of referee, ensuring that both the debtor, and the creditors, are treated fairly and evenly.

Reasons for Filing Bankruptcy

  • Eliminates most unsecured debts
  • Stops wage garnishments
  • Stops collection actions
  • Credit counselling to help financial recovery
  • Fresh start free from debt

After filing bankruptcy, unsecured creditors will not be able to take legal steps to recover their debts (such as seizing property or wage garnishment) once a bankruptcy procedure has started.

You Do Not Lose Everything

When filing bankruptcy in Ontario, most personal belongings are exempt from seizure by law.

You keep:

  • unlimited clothing
  • $6,600 for a motor vehicle (car, truck, etc.);
  • $13,150 worth of furnishings and appliances;
  • $11,300 worth of tools of the trade (equipment that you use to earn a living);
  • Most pension plans, certain types of life insurance policies, and RRSPs (excluding recent contributions).

How long will bankruptcy last?

If you are a first-time bankrupt with no surplus income, have completed all of your duties and if no creditors object, you could begin your life debt free in just 9 months. If you have surplus income, your bankruptcy will be extended to 21 months.

Steps to Filing Bankruptcy in Canada

There are 5 basic steps to filing bankruptcy with a Licensed Insolvency Trustee in Canada:

  1. Get a free debt assessement
  2. Sign bankruptcy documents
  3. The trustee files these documents with the government starting your creditor protection
  4. Completion of duties including attending two credit counselling sessions
  5. Obtain your Certificate of Discharge and begin living debt free

Get a Personalized DEBT FREE PLAN

At Hoyes, Michalos we offer everyone a FREE, no obligation, professional consultation in all our Ontario locations.

Our licensed experts will review the details of your individual situation and help you decide if claiming bankruptcy is the right debt relief option for you. Our caring, friendly team will work with you through the entire process.

“I would first like to start off by saying how grateful I am to you and your agency for helping to make this experience a pleasant one.  I do not know too many people who would enjoy going through a process like this one.  You have been very accommodating, helpful, patient, and supportive, and for that, I am very appreciative.   I will recommend your company to others, if need be!”

Kim in Barrie

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