Q1: What is bankruptcy?
Bankruptcy is a legal process that helps you eliminate most unsecured debts when you can no longer repay them. In Canada, a bankruptcy is filed by, and administered by, a Licensed Insolvency Trustee.
Q2: How long does bankruptcy last in Canada?
For a first-time bankruptcy with no surplus income, discharge can happen in as little as 9 months. If you have surplus income or past bankruptcies, it may last longer.
Q3: Will I lose all my assets if I file bankruptcy?
No. Each province has exemptions that allow you to keep certain property, such as clothing, household items, and in many cases a vehicle.
Q4: How does bankruptcy affect my credit rating?
A first bankruptcy is recorded on your credit report for about 6 years after discharge.
Q5: What debts are not erased by bankruptcy?
Some debts, such as child support, spousal support, court fines, and student loans less than 7 years old, are not discharged.
Q6: Where can I get bankruptcy help in Western Canada?
You can speak with a Licensed Insolvency Trustee serving clients across Winnipeg, Brandon, and Steinbach in Manitoba, as well as Calgary and Saskatoon across Western Canada. They can review your financial situation and help determine whether bankruptcy or another debt solution is the right option for you.
