Bankruptcy in Canada
Bankruptcy is a legal process that declares a person or business insolvent and discharges most of their debts. When individuals are in bankruptcy, creditors cannot initiate collection actions against them. Bankruptcy is one choice for a debtor who cannot meet their debt obligations.
You must use a licensed trustee if you declare bankruptcy in Canada. The trustee will review your assets, make contact with your creditors and arrange for payments to be made to these creditors. They will also advise you of your rights and obligations during the bankruptcy process. There are both federal and provincial rules governing bankruptcy in Canada.