Bankruptcy Vancouver

If debt is taking over your life, you're not alone — and you’re not without options. At Crowe MacKay & Company, our bankruptcy trustees in Vancouver are here to support you through every step, helping you explore real, practical solutions — including personal bankruptcy — to regain control of your finances and future.

Personal bankruptcy is a legal process that provides relief from unsecured debts when you can no longer meet your financial obligations. Governed by Canadian law and overseen by the Office of the Superintendent of Bankruptcy (OSB), bankruptcy gives you a fresh financial start — and protection from creditors.

Once you file for bankruptcy in Vancouver, your eligible debts are discharged (eliminated) after completing specific legal duties (see further down the page). This can offer much-needed peace of mind and a pathway toward financial stability.

Declaring bankruptcy in Vancouver can offer immediate protection and relief, including:

• Stopping collection calls and creditor harassment
• Ending wage garnishments
• Freeing up frozen bank accounts
• Halting active legal actions or lawsuits

While bankruptcy can have lasting effects on your credit, it can also provide a clean break from unmanageable debt — giving you space to rebuild. We’ll ensure you understand every aspect before moving forward.

To qualify for personal bankruptcy, you must be insolvent — meaning:

• You live, do business, or own property in Canada
• You owe at least $1,000
• You’re unable to meet your financial obligations as they come due
• Your debts exceed the value of your assets

Even if you meet these criteria, bankruptcy may not be your only option. That’s why your first step should be booking a free consultation with one of our bankruptcy trustees in Vancouver.

1. A Personal Financial Review

We take the time to fully understand your financial situation to help you make an informed choice.

2. Filing for Bankruptcy

If bankruptcy is your best option, we handle the paperwork, notify creditors, and stop the collection process.

3. What Happens to Your Assets?

We’ll explain what you can keep and what may need to be surrendered under BC’s bankruptcy exemption laws.

4. Surplus Income Payments

You may be required to make monthly payments if your income exceeds a certain threshold.

5. How Long Does Bankruptcy Last?

Most first-time bankruptcies in Vancouver last 9 to 21 months, depending on your income and compliance.

Once you’ve declared bankruptcy, you’ll need to complete some key duties, including:

• Making required surplus income payments (if applicable)
• Attending two financial counselling sessions
• Reporting your monthly income and expenses
• Surrendering credit cards and any non-exempt assets
• Filing your income tax information
• Cooperating fully with your bankruptcy trustee

By completing these steps, you'll be eligible for an automatic discharge — officially wiping out your eligible debts. However, if any duties are missed or incomplete, your discharge could be delayed or have additional conditions.

Bankruptcy isn’t the right path for everyone. Many people struggling with debt may be better suited to a consumer proposal — a legal alternative to bankruptcy that allows you to:

• Settle your debts for less than you owe
• Keep your home, car, and other key assets
• Avoid the long-term impact of bankruptcy on your credit

If you have a steady income and want to avoid filing for bankruptcy, a consumer proposal may be the solution.

Learn more about consumer proposals

How long does bankruptcy stay on your credit report in BC?

Typically, 6 to 7 years after discharge, depending on the credit bureau and province.

Can I keep my car if I file for bankruptcy in Vancouver?

Yes, if your vehicle is within BC’s allowable exemption limits.

Can I keep my home during bankruptcy?

It depends on your equity and local exemption rules. We’ll assess this during your consultation.

Will joint debts be included in bankruptcy?

Your share of the debt is included, but co-signers remain responsible for repayment.

Can I still travel during bankruptcy?

Yes, you can travel while you’re bankrupt. There are no restrictions on travel, but you must continue to meet your responsibilities — such as reporting your income and attending required counselling sessions. It’s also essential to inform your Trustee of address changes or extended absences.

How do I file for bankruptcy if I can’t afford it?

We understand that when you're considering bankruptcy, money is already tight. That’s why we offer flexible, affordable payment plans tailored to your situation. During your free consultation, we’ll walk you through the costs and work with you to make the process as manageable as possible.

Does bankruptcy clear CRA tax debt?

Yes, in most cases, personal income tax debt owed to the Canada Revenue Agency (CRA) can be included in a bankruptcy. However, exceptions apply in cases involving fraud or severe tax-related penalties.