Immediate relief from your debts and protection from creditors.

Bankruptcy is a formal, legally binding process where the debtor applies for legal forgiveness of debt. The process for a first time bankrupt can last 9 to 21 months, depending on whether the bankrupt has surplus income.


There are several benefits to filing for bankruptcy:

  1. Taking a step to regaining control of your life and financial situation;
  2. Stop harassing creditor phone calls;
  3. Freeze interest payments;
  4. Stops legal actions;
  5. Releases you from your debt obligations;
  6. Stops any garnishments against your wages;
  7. Provides a cost-effective debt solution;
  8. No limit to the size of debt load.

Debts that are not forgiven in bankruptcy:

  1. Secured debts, such as mortgages and car loans;
  2. Spousal and child support;
  3. Student loans, if the loans are less than 7 years old;
  4. Fines or penalties imposed by court;
  5. Debts arising from fraud;

Effect on credit rating:

Bankruptcy reflects as an R9 on your credit rating for 6 years after you are discharged.

Effect on your home:

For more information on how Bankruptcy affect your home; see this blog.

Effect on assets:

Certain assets are exempt from seizure in a bankruptcy; see this blog on exemptions for further information.

To learn more about Bankruptcy in Canada, take a look at this blog titled:  What is Bankruptcy?