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.
