When your debt has become unmanageable and you can't keep up with the payments, deciding to file for bankruptcy is a last resort. It involves careful counselling from a Licensed Insolvency Trustee (LIT), who is your best resource for understanding how bankruptcy will affect your financial situation.
| ✅ Credit card debt (including store credit cards) |
| ✅ Bank loans |
| ✅ Payday loans |
| ✅ Tax debt |
| ✅ Medical bills |
| ✅ Student loans, if 7+ years since you were last a student |
| ❌ Mortgage |
| ❌ Car loans |
| ❌ Alimony |
| ❌ Child support |
| ❌ Court fines |
| 1. You owe at least $1,000 in unsecured debt; |
| 2. You cannot pay your debts as they come due; |
| 3. You are insolvent, meaning you owe more than the value of the assets you own; |
| 4. You must either reside, do business, or have property in Canada. |
1. Book your free consultation to assess your finances and review all your options.
2. Fill out an application and file for bankruptcy with your LIT.
3. LIT reviews status of assets.
4. Make monthly payments to your LIT.
5. Attend credit counselling to help you plan to rebuild your credit.
6. At the end of your bankruptcy, you are legally discharged from your debts.
✅ Eliminates your debt |
| ✅ Freezes interest payments |
| ✅ Stops harassing phone calls, legal action & wage garnishments |
| ✅ Protects some of your assets |
| ✅ Costs less than some other options |
| ✅ Can typically be completed quickly |
| ❌ Potential loss of non-exempt assets |
| ❌ Note on credit report for 7 years |
| ❌ Monthly payments based on income |
| ❌ Monthly budgeting statements |
| ❌ Some debts are excluded |
In this debt story Wendy, a pseudonym, is a retired widow in her seventies who was struggling to repay her debts after her husband passed away. With two pensions, they were able to get by and even save a little money. When her husband passed away however, Wendy’s finances took a turn. Without any inheritance or life insurance to rely on, she was left to survive on a single pension.
Wendy had a combination of personal and joint debt. She had two personal credit cards ($3,500), two joint lines of credit ($44,000) and a secured car loan.
Her BDO Licensed Insolvency Trustee was able to negotiate a monthly payment of less than $200 to cover the administration fees and surplus payments related to her file.
In the end, Wendy was relieved to learn her car loan would be excluded from the bankruptcy proceedings and that bankruptcy provide her with a fresh start so that she could move forward with less of a financial burden.
Read more about Wendy's story here.
Talking about debt can be intimidating, so we ensure you feel supported every step of the way.
We take the time to explore all debt relief options, so you can choose the best one for you.
With 120+ offices and 60+ years of experience, we're ready to help in your local community.
Talking about money can be uncomfortable & intimidating, which is often enough to prevent you from getting the help you need.
At BDO, we believe that judgement-free, compassionate support goes a long way to making that first step just a little bit easier. We know that debt problems can happen to anyone and there's no shame in seeking help.
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