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).
Many people who file for bankruptcy feel anxious at first, but our Faber Licensed Insolvency Trustees are here to listen, guide, and support you every step of the way.
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:
Consider a situation where someone was overwhelmed by debt, bombarded by constant collection calls, hit with wage garnishments, and struggling to keep up with everyday expenses.
After speaking with a Faber Licensed Insolvency Trustee, and sharing thier life goals, they felt supported, unjudged, and saw a way forward. They filed for personal bankruptcy and saw immediate changes. Collection calls and wage garnishments stopped, giving them much-needed breathing room.
More than $45,000 in unsecured debt was eliminated, allowing them to move forward without ongoing creditor pressure. Today, financial stress no longer shapes their decisions, and rebuilding with confidence is possible.
If this scenario feels familiar, you are not alone. A confidential conversation with a Licensed Insolvency Trustee can help you understand your options and decide what path makes sense.
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.
Your pensions, RRSPs, RESPs, RIFs and LIRAs remain fully protected.
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.
As long as beneficiaries are within the preferred class of parent, spouse and child.
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.
Every month, our own Dan McDicken talks with CTV Your Morning, sharing practical insights on debt solutions to help Canadians navigate financial challenges with confidence.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
Learn more about personal bankruptcy and how it can help you take control of your finances:
Filing without a Licensed Insolvency Trustee is risky. Faber LITs ensure the process is properly managed, legally binding, and tailored to your situation. Their guidance helps protect you and your assets.
A first-time bankruptcy in Alberta typically stays on your credit report for six to seven years, but you can start to re-establish your credit right after being released from bankruptcy. The exact timeline depends on the credit bureau and whether you meet all obligations during the process.
If your income or family circumstances change, your monthly bankruptcy payments may be adjusted by your Trustee. This ensures the process remains manageable while keeping you compliant with legal requirements.
