If you have more than $1,000 in debt and are insolvent, you can declare bankruptcy in Canada. Insolvent means you can no longer pay your monthly bills on time, either through your current income or through the sale of personal assets. If you owe $50,000 in debt and have $50,000 or more in liquid investments or in the equity in your home, you are not insolvent.
Bankruptcy laws have exemption allowances for certain personal assets and a monthly living expense allowance based on your family size and where you live. If your assets are worth more than the exemption amount and your income is higher than the living expense allowance, you will have to contribute some of your surplus income and proceeds from the sale of non-exempt assets into a bankruptcy estate.
Find Bankruptcy Help
Debt and the economy are in the news daily and yet where does a Canadian facing large debts turn to for help? A bankruptcy trustee is trained and certified to help you find the relief you deserve.
- How long will I be bankrupt?
- Who will know I have filed for Bankruptcy?
- Canada Bankruptcy Causes
- Other Bankruptcy Articles
Other Canada Bankruptcy Resources
- Office of the Superintendent of Bankruptcy
- Office of Consumer Affairs
- Bankruptcy & Insolvency Act
- Bankruptcy Trustee Code of Ethics