Reset your debt with bankruptcy

An option for a fresh start from unmanageable debt.

What is bankruptcy?

Personal bankruptcy is a debt solution under the Canadian Bankruptcy and Insolvency Act. This option allows you to clear almost all your debt, such as income tax debt, credit cards, overdue utility bills, lines of credit, and loans.

Woman standing in dark clouds reaching up for a gold key, symbolizing a financial fresh start

What should you consider before filing for bankruptcy?

While bankruptcy grants you immediate protection from creditors, it may affect your assets and credit rating, and you’ll still be required to pay some debt.

Advantages

All interest payments stop
Some assets, such as your home and car, may be protected depending on your province
Most debt is cleared
In some cases, your student loan debt can be included

Considerations

All non-exempt assets must be turned over to your trustee
Your credit cards will be cancelled
Your credit rating will be affected for six or seven years, depending on your province
You'll be required to pay child or spousal support, court-imposed fines, and, in some cases, student loans.
You'll be required to submit monthly financial statements and make monthly payments to your trustee.

Woman sitting in a chair with her head in her hands, experiencing financial stress over collection calls, past due bills, and high debt.

Should I file for bankruptcy?

Bankruptcy can be an ideal solution for individuals who:

Are struggling to meet their financial obligations
Have reviewed all other options for dealing with debt
Are dealing with debt collectors or having their wages garnished

Before you decide to file for bankruptcy, it’s important to consider other options. A free, no obligation consultation with one of our licensed professionals can help you understand your unique financial situation and the solutions that may be available to you.

Book a free consultation

How do I file for bankruptcy?

Only a Licensed Insolvency Trustee (LIT) can administer bankruptcies, which are regulated by the “Bankruptcy and Insolvency Act” of Canada. If your LIT determines that bankruptcy is the appropriate solution for your financial situation, you will work together to complete your application.

Learn more about the process

Man and woman having a virtual consultation via a laptop with a debt solutions professional. There are illustrations of a calculator, a cheque and a lightbulb circling their image.

A smiling young male exploring debt relief solutions on his smartphone.

Consumer proposal: an alternative to bankruptcy

Get your finances back on track without going bankrupt. A consumer proposal gives creditors a reasonable repayment and you, a financial fresh start.

The amount you pay is determined by what you can afford.
You’ll likely only repay a portion of what you owe.
In most cases, you will keep all your assets, including your car, home, and RRSPs.
There is a lesser impact on your credit rating compared to bankruptcy.

Learn about consumer proposals

Debt happens more than you think

We’re helping Canadians take control of their finances and live happier, debt-free lives.

I can't say enough about what a fantastic experience I had from start to finish.

I was treated with kindness and respect during a difficult situation that was hard to maneuver on my own. I couldn't have made this fresh start without them. The trustees and associates and everyone involved made the experience as seamless and painless as possible. I highly recommend this business if you are struggling financially and need some guidance. I am over the moon pleased with Grant Thornton Ltd.

— Angelique W, Vancouver, BC

One phone call changed my life! I can breathe again.

I was waiting so long dreading the call, but I put my shame aside and called. The lady that picked it up was a saint. She made it so easy, and I could tell she cared about me as a person and not a number. Thanks to the Grant Thornton team. Cheers!

— Mik, Passage, NS

Kudos to the staff at Grant Thornton who provided me with the information necessary to make the best possible decision for my circumstances.

They were always available, even during COVID-19, and responded to me with quick and concise answers to any and all of my questions. The kindness I was shown by the staff & Trustee of the Thunder Bay office was unmeasurable. They made my decision one of the best I could have made!

— Donna M, Atikokan, ON

I can’t thank you enough. 110% satisfied.

My debt has been such a huge weight on my shoulders over the last few years. Finally, I made the move to deal with it. I am so happy I chose Grant Thornton, and extremely satisfied and over the moon happy to have their help. They made the process so much easier. Very knowledgeable and always readily available. Thank you so much for all your help.

— Darlene S, Calgary, AB

"Thank you" just doesn't fully express what I want to say.

I want to express my heartfelt thanks to Carla Arellano for all of her help. She can never fully understand what a difference she has made in my life. "Thank you" just doesn't fully express what I want to say. I made a call to a different company simply to inquire about the process and found the response to be cold, impersonal and anything but reassuring. What a difference I experienced from the first phone call to Grant Thornton.

Thank you so much for your kindness, compassion, lack of judgement and reassurance. You provided me with excellent information and clearly explained my options. I am sure that many of your clients come to you feeling overwhelmed and carrying shame and guilt over the situation they have found themselves in. While that was how I was feeling about myself, I never felt any of that judgement from you, and that was a huge relief throughout this process!

— Anonymous

Take the first step to debt freedom

Speak to one of our debt solutions professionals during a free, no-obligation consultation.

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Your questions answered

The assets you can keep in bankruptcy are based on the province in which you reside. Generally, pensions and RRSPs are exempt in all provinces. Other potential exempt assets are equity in your home (up to a certain amount), a vehicle (up to a certain amount), tools of the trade, household furnishings and medical aids. To learn more about what assets are exempt in your province, talk with one of our debt professionals during a free consultation.

If you complete your duties and payments in a timely manner and no creditors object to your discharge, you’re eligible for an automatic discharge from bankruptcy at:

1st time bankruptcy:

Nine months or 21 months if there is surplus income to pay

2nd time bankruptcy:

24 months or 36 months if there is surplus income to pay

If you have high-income tax debt or a creditor opposes your discharge, you may have to go to court to be discharged from bankruptcy.

Unless you have co-signed or taken on debt together (like a car or mortgage), your spouse will not be affected by your bankruptcy.

If they have co-signed for a debt included in your bankruptcy, they are responsible for paying it. If you jointly own assets, there are options for paying out your share so that, in some cases, your spouse can retain the asset.

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