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Personal Bankruptcy in Canada

Break Free from Debt and Take Back Control of Your Life
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Rebuilding Your Financial Life Starts With Us

For over 55 years, Crowe MacKay & Company has supported individuals across Vancouver and Surrey in overcoming serious financial challenges. We understand how overwhelming it can feel when debt becomes unmanageable and creditors constantly call.

Whether you're facing wage garnishments, frozen accounts, or are simply unable to meet your financial obligations, our Licensed Insolvency Trustees are here to help. We’ll guide you through your options — including a consumer proposal or declaring personal bankruptcy — with empathy, professionalism, and clarity.

There’s no one-size-fits-all solution to debt. We take a thoughtful, personalized approach — getting to know your situation and offering clear, practical steps to help you regain peace of mind.

What Is Personal Bankruptcy?

Personal bankruptcy is a legal process that provides debt relief to individuals who are unable to repay their unsecured debts. Governed by Canadian law and overseen by the Office of the Superintendent of Bankruptcy (OSB), declaring bankruptcy gives you protection from creditors and a clear path toward financial recovery.

When you declare personal bankruptcy in Canada, your eligible debts are eliminated (discharged) after fulfilling specific duties and meeting legal requirements. This allows you to reset your finances and move toward a more stable future.

Benefits of Declaring Personal Bankruptcy

Once you declare bankruptcy, you will be relieved from the harassment by those you owe money to and legal actions taken against you, meaning:

  • Creditors can no longer contact you
  • Your wages can no longer be garnished
  • Any active lawsuits are ended
  • Frozen funds are released

It is important to consider that while you may think being relieved from all of your debts is the quick and easiest way to get your finances back on track, filing for personal bankruptcy can have a significant impact on your life. Our Licensed Insolvency Trustees at Crowe MacKay & Company are committed to working with you to review all the options available, such as a consumer proposal, before deciding to declare personal bankruptcy.

Do I Qualify for Personal Bankruptcy?

To be eligible for bankruptcy, you must be insolvent. There are several factors to consider when determining whether you are insolvent, including:

  • Residing, conducting business or owning property in Canada
  • Having debts greater than $1,000
  • Not being able to satisfy financial obligations as they become due
  • Having more debt than the value of the assets that you own

Although you may consider yourself insolvent, there may be other options besides bankruptcy. Your first step should be to contact us and meet with one of our Licensed Insolvency Trustees in Vancouver or Surrey.

How Personal Bankruptcy Works in Canada

Let’s Talk About Your Finances

We take the time to understand your complete financial picture so you can make an informed decision.

Filing for Bankruptcy

If bankruptcy is the right option, we’ll handle the paperwork and notify your creditors—so you don’t have to.

What Happens to Your Assets During Bankruptcy

We'll help you understand which assets you can keep and what may be used to repay your debts.

Understanding Surplus Income Payments

If your income exceeds government guidelines, we’ll explain how payments work and what they mean for you.

How Long Will Bankruptcy Last?

Most first-time bankruptcies are over in 9 to 21 months—your Trustee will guide you through every stage.

Your Duties During Bankruptcy

Once you have declared personal bankruptcy, you must fulfill specific duties to get discharged. Some of the essential tasks are:

  • Making the required surplus income payments
  • Attending two counselling sessions
  • Reporting your monthly income and expenses
  • Disclose all your property and provide documents requested by us (the Trustee)
  • Surrendering all non-exempt assets along with your credit cards to the Trustee
  • Providing the Trustee with your income tax information

Completing your duties allows you to receive an automatic discharge. If any obligations are not met or information is misrepresented, your discharge may be delayed or subject to further conditions.

 

Explore Your Alternatives Before Filing

Declaring personal bankruptcy is a serious decision, and it’s not the only option available to those struggling with debt. Many individuals may qualify for a consumer proposal, which allows you to settle your debts for less than you owe — without giving up your assets or filing for bankruptcy.

A consumer proposal can be a great alternative if you:

  • Have a steady income
  • Want to avoid the impact of bankruptcy on your credit
  • Prefer to keep your home, car, or other vital assets

Our Licensed Insolvency Trustees will walk you through all available debt relief options and help you choose the one that best fits your circumstances.

Learn more about Consumer Proposals.

FAQ's

How long does bankruptcy last?
For most first-time bankruptcies, the process takes 9 to 21 months, depending on whether surplus income payments are required.
How long does bankruptcy stay on a credit report?
In Canada, a bankruptcy typically remains on your credit report for 6–7 years after discharge (depending on the credit bureau and province).
Can you claim bankruptcy and keep your car?
Yes, in many cases you can keep your car, especially if its value falls within your province’s exemption limits.
Can you claim bankruptcy and keep your house?
Possibly — it depends on your home equity and local exemption rules. Our Trustees will review this with you during your consultation.
What happens to joint debts?
If you and another person co-signed a debt, they may still be responsible even if you declare bankruptcy.
Can I travel during bankruptcy?
Yes, you are allowed to travel while bankrupt. However, you must inform your Trustee of any address changes and fulfill your duties.
How do I file for bankruptcy with no money?
Bankruptcy includes costs, but your Trustee will work with you to develop a manageable payment plan if you're unable to pay upfront.
How long after bankruptcy can you apply for a loan in BC?
You may apply for credit as soon as you're discharged, but it can take time to rebuild your credit score. Lenders may offer credit with higher interest or require a co-signer.
Does bankruptcy clear taxes?
Yes, personal income tax debt can be discharged in bankruptcy, unless it's deemed fraudulent or involves penalties for tax evasion.
How much does it cost to file for bankruptcy?
Costs vary depending on your income and whether surplus income payments apply. During your consultation, we’ll clearly explain what to expect.

Find Out If Bankruptcy Is Right for You

If you’d like to connect with one of our Licensed Insolvency Trustees in Vancouver or Surrey, call (604) 689 3928, email [email protected], or fill in the form below.

Book a Free Consultation

Our licensed experts are here to answer all your questions about bankruptcy and consumer proposals. Whether you're an individual or a business, we’ll help you understand your options and guide you through every step of the process with care and confidence.

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