Bankruptcy in Ontario

Bankruptcy is a legal option in Ontario that wipes the slate clean and eliminates most unsecured debts such as credit cards, lines of credit, personal loans, and payday loans. When all other debt solutions such as a consumer proposal or debt consolidation are not possible, bankruptcy is used as a last resort.

Benefits of Filing for Bankruptcy:

  • It immediately stops collection calls, wage garnishment, and threats of lawsuits.

  • Fastest legal option for debt relief (can last 9-21 months)

Who Qualifies for Bankruptcy:

  • You must be 18 years of age or older

  • You owe at least $1000 in unsecured debt and either:

    • you can’t keep up with your payments, or

    • you owe more than you own (your debts are greater than your assets)

  • You live in, own property, or do business in Canada (citizenship not required)

Frequently Asked Questions

  • Your mortgage, car loan, child support, alimony, court-imposed fines ( ex. traffic and parking tickets), fraudulent debts.

  • Yes, but only if you have been out of school for 7 years or more.

  • You can keep your home in Ontario after filing for bankruptcy if:

    • You are up to date on mortgage payments, and

    • The equity in your home is not more than $12,997.

    If the equity is higher, your house may be sold or you will have to pay back the excess equity.

  • In ontario, you can usually keep one car. The car’s value can be up to $8,578 (its resale value “as is”).

    If you’re car is worth more than $8,578, you can either pay the difference or give it up.

    If you are leasing or financing a vehicle and are up to date on payments, you can keep it.

  • Bankruptcy will lower your credit score, but the exact amount varies from person to person.

    Once your bankruptcy is finished, it will stay on your credit report for about 6 years. During this time, it may be harder to get approved for loans or credit cards, but you can begin rebuilding your credit with the right steps.

  • During our free call, we’ll go over your financial situation and I’ll explain your options to see if it’s the right choice for you. If you decide to proceed with bankruptcy, I’ll guide you step-by-step in collaboration with a licensed trustee.

Not sure which debt solution is right for you? Book a free call and I’ll help you understand your options.

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