What to Expect when Facing Personal Bankruptcy

| 5/13/2022

When faced with serious financial trouble, personal bankruptcy is one of the options you can pursue to help deal with your debt. Consult with a Licensed Insolvency Trustee at Crowe MacKay & Company to review the best debt solution in Vancouver for you.

Personal bankruptcy is typically a voluntary decision. Upon filing an assignment into bankruptcy, any assets you have that are not subject to government exemptions will vest with the Trustee. The Trustee will then realize on the assets for the general benefit of your creditors. The cost to file a bankruptcy is governed by the Bankruptcy and Insolvency Act and varies depending on your unique case. A credible Licensed Insolvency Trustee in Vancouver can offer helpful guidance through this complex process.

How Can a Licensed Insolvency Trustee Help?

Licensed Insolvency Trustees, including their fees, are regulated by the government to handle various debt solutions for individuals facing significant financial trouble. Upon filing a bankruptcy or consumer proposal, most creditors are legally obligated to stop all collection activity. There are various alternatives to personal bankruptcy, but if you decide on this course of action, you will be responsible for completing an application form and providing all necessary documents to your Trustee prior to meeting to file the assignment into bankruptcy.

How Long Does Bankruptcy Last?

Most individuals who are filing for personal bankruptcy for the first time are discharged after nine months. However, this is extended to 21 months if your income is over a certain limit. For those who have previously declared bankruptcy, the term of the bankruptcy will last for 24 to 36 months depending on your income level. Personal bankruptcy will impact your credit score and may impact potential future employment opportunities, as well as your ability to receive loans. A Licensed Insolvency Trustee in Vancouver can help clarify this.

Learn more about Personal Bankruptcy


This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.

If you require corporate or personal Insolvency services, Crowe MacKay & Company provides custom solutions for clients, allowing them to live debt-free.

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