Bankruptcy Canada

Do I really lose everything if I file for bankruptcy in Canada?

No, you do not lose everything if you file bankruptcy in Canada. The rules in each province are different, but in general you are allowed to keep your household furnishings, clothing, an inexpensive car, your RRSP (except what you contributed in the last year), and even your house if it's fully mortgaged. To learn about the exemptions for your province, please visit the Bankruptcy Exemptions by Province section of the site.

When you file bankruptcy in Canada you are required to make a payment each month based on your surplus income; the more you earn, the more you pay. You will also lose your tax refund. If you have significant income or assets, a consumer proposal may be a better option for you.

The advantage of filing bankruptcy is that your unsecured debts, like credit cards, bank loans, payday loans and even income taxes are eliminated.

If you would like to know what assets you would get to keep if you were to file for bankruptcy, feel free to contact a Bankruptcy Trustee for their expert feedback. They provide this service free of charge, and are happy to help: simply describe your situation (using the form below), and we will get back to you in the next 24 hours.

What about my house?

Like consumer proposal, personal bankruptcy in Canada only deals with unsecured creditors. Unless you have accumulated significant equity in your home, it will probably not be affected by your bankruptcy. If you own a home, make certain to discuss the disposition of your home in detail with your bankruptcy trustee before starting the bankruptcy process.

What about my car?

If you have clear title to your car (e.g. you haven't pledged it as security for a loan) in the moment of filing for bankruptcy, and the car is worth more than $5,650, then you will be required to either pay the trustee the value of the car from your post-bankruptcy earnings or the trustee will be forced to seize and sell your car. If you have a car, or any other type of vehicle, make certain to discuss the disposition of your car with your trustee before you file bankruptcy.

Bankruptcy Trustees by Province

To find a licensed Canadian Bankruptcy Trustee near you, click on your province:

	Alberta		New Brunswick		Ontario
	British Columbia		Newfoundland & Labrador		Quebec
	Manitoba		Nova Scotia		Saskatchewan

What do I do now?

If you are experiencing money problems, and are thinking about filing for bankruptcy in Canada, we recommend you to arrange for an in-person consultation with a licensed Bankruptcy Trustee. All of the Bankruptcy Trustees listed on Moneyproblems.ca offer this service free of charge. This initial, no-obligation consultation will help you understand the details on bankruptcy Canada rules, as well as learn about the alternatives to bankruptcy that are available to you. Finally, it will help you make an informed decision on what is the best option in your specific situation.