Facing debt can be overwhelming, but you don’t have to go through it alone. Personal bankruptcy is a solution designed to help you regain financial control, stop collection actions, and build a fresh start.
It also provides you with immediate protection against legal action from unsecured creditors, including the Canada Revenue Agency (CRA).
If so, filing for bankruptcy may be the right path for you towards a debt-free tomorrow. Our Licensed Insolvency Trustees will guide you through the bankruptcy process with expertise and compassion, ensuring you feel supported every step of the way as you take back control of your financial future.
Personal bankruptcy is a legal process that helps individuals who are unable to pay their debts get a fresh financial start.
Unlike other debt restructuring solutions, personal bankruptcy is usually the quickest and least expensive way to eliminate your debt.
Filing for bankruptcy provides immediate protection against any further action from unsecured creditors, including the CRA for income tax or GST debt.
When you are eventually discharged from bankruptcy, you will no longer be legally responsible for any of your unsecured debts.
Once you enter bankruptcy, you must be discharged or released from bankruptcy before you can get a fresh start.
The length of a first-time bankruptcy is nine months. If you have surplus income, the length of your bankruptcy increases to 21 months.
If you enter bankruptcy for a second time, the length increases to 24 months (with no surplus income) or 36 months (with surplus income).
To file for personal bankruptcy, you must owe at least $1,000 and:
One of the most common concerns about bankruptcy is the worry of losing your assets. The good news is that, in most cases, you are allowed to keep many essential assets. Bankruptcy is designed to give you a fresh start, not to strip away everything you own.
Here’s what you’ll likely be able to keep:
Under provincial law, most personal items, including clothing, household furniture, and basic appliances, are exempt from seizure.
You can often keep your vehicles up to a certain value.
In Alberta, you are allowed to keep up to a certain amount of equity in your principal residence.
Most pensions and RRSPs are protected except for contributions made in the 12 months before filing.
Government assistance payments such as GST credits, Canada Child Benefit (CCB), and pensions like CPP and OAS are generally protected and will not be seized.
After filing for personal bankruptcy, you’ll experience immediate debt relief:
Each of these steps is designed to help you rebuild confidence and practical skills for a stronger financial future. If all requirements are met, your bankruptcy discharge and fresh start can happen in as little as nine months.
Remember: bankruptcy isn’t the end. It’s simply the beginning of your new financial future.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
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