If you are unable to pay your bills and are falling deeper into debt, bankruptcy may be the last alternative for you. Be sure to investigate other options though. This should be considered the last resort for most cases.

How does bankruptcy work?

If you decide to file for bankruptcy, you will need to meet with a licenced trustee. They will build a profile of the amount of debt you have, your assets and your income. It is possible in bankruptcy for people to lose their assets (e.g., houses, cars), but this is not always the case. Everyone is different and rules vary from province to province.

Generally you will be discharged from bankruptcy in nine months, but conditions will vary.

How much does it cost to go bankrupt?

The cost of bankruptcy will vary on a case-by-case basis. This will be organised by your trustee.

Credit Rating

Once declared bankrupt, you will have an R9 rating for seven years for your first bankruptcy. If you declare bankruptcy more than once, they may never get removed from your credit report.