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Considering filing bankruptcy? Bankruptcy options information

filing bankruptcy - IMMEDIATE DEBT RELIEF

At BDO, we understand that filing for bankruptcy is a stressful and often emotional decision. It may be the right solution to regain control of your future if you:

  • Owe more money than what you earn
  • Are unable to make your regular debt re-payments on your credit cards or loans
  • Are unable to pay your monthly bills
  • Have had your wages garnisheed 
 

The benefits of filing for bankruptcy

Although filing for bankruptcy may make you feel like you have “hit rock bottom”, there are several benefits that can give you significant relief from your debt, as well as your stress. These benefits include:

  • Protection from creditors taking legal action against you
  • Protection of certain assets that creditors may otherwise be able to take
  • Release of most, if not all, debts (i.e. you will not have to pay them back)
  • Offer counselling to assist with your financial future
  • Relief from financial stress and helps you get a fresh start

Learn more about the benefits of filing for bankruptcy.

Important facts about filing for bankruptcy

The important facts you should know about filing for bankruptcy include:

You will not lose everything - Contrary to popular belief, you will not “lose everything” by filing for bankruptcy. The Bankruptcy and Insolvency Act works with federal and provincial legislation to protect many personal assets, including your car, furniture and RRSPs, which are often exempt from seizure by the trustee.

Bankruptcy offers immediate protection from harassing calls from creditors - You will be protected immediately from creditors’ legal actions and pressure from collection agencies. Their phone calls, as well as any wage garnishments, will stop.

A fresh start is right around the corner - You will get a fresh financial start immediately and can be eligible to be discharged from your bankruptcy in as soon as nine months.

Bankruptcy is a legal process to which thousands of Canadians turn - Bankruptcy is designed to relieve honest but unfortunate debtors of their debt burden. You have responsibilities to your creditors under the process, including checks and balances, to make sure that bankruptcy is fair based on your circumstances.

Need more bankruptcy information?

 

Costs of filing bankruptcy 

Your BDO Trustee will discuss the costs of filing for bankruptcy with you to answer all of your questions and ensure you understand how bankruptcy costs are calculated.

While there are certain costs when filing for bankruptcy, in the long run, it is generally less expensive than many other debt management options.

Bankruptcy exemptions

Understanding which assets you can keep and which you must give up when you file for bankruptcy can be confusing and can also vary from one province and territory to another.

Bankruptcy and your house

A common question about filing for bankruptcy is whether you can keep your home, and how your mortgage will be affected. Many individuals have the option of keeping their homes if they pay the equity to the Trustee.

Debts not included in bankruptcy

Not all outstanding debts can be erased through bankruptcy. Learn what debts and financial commitments will not be discharged by the process. ​

Bankruptcy and divorce/child support

Learn how filing for bankruptcy will affect child support and bankruptcy or alimony payments.​

Tax debt

Do you have tax debt owing to the Canada Revenue Agency (CRA)?Unpaid taxes owed to the CRA often represent a significant amount of the debt owed by those with financial problems. A discharge from bankruptcy releases debts owing to the CRA.  ​

Alternative to filing for bankruptcy

Filing for bankruptcy may not be your only option to relieve debt problems. BDO can help you make a consumer proposal, an alternative to filing for bankruptcy that can help you get out of debt ―without going bankrupt.

 

Check out our frequently asked questions (FAQ) section for more information about bankruptcy or contact a BDO Trustee

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With over 100 offices, we are located where you need us to be. Call your local office today.


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