Bankruptcy

While not the only debt relief solution available, bankruptcy could be the right choice for you to eliminate your unmanageable debt.

Eliminate your unmanageable debt in as few as nine months
Creditors can’t refuse your bankruptcy
No maximum debt threshold
Peace of mind and a fresh financial future

See if you qualify Call: 1-855-884-9243

Is bankruptcy right for you?

Personal bankruptcy is an effective, legal debt relief solution under Canada’s  Bankruptcy and Insolvency Act that gives Canadians the fresh start they need. Bankruptcy provides relief from nearly all debts, including credit cards, personal loans, payday loans, lines of credit, income tax & other CRA debt and more.

While bankruptcy will give you and your family immediate financial protection, it should be considered a last resort after other debt relief options have been reviewed, such as a consumer proposal.

Our Licensed Insolvency Trustees will review your unique financial situation and help you decide if bankruptcy is your best step toward financial recovery and debt freedom.

See if you qualify In-depth blog

Understanding the bankruptcy process

A step-by-step guide

A Licensed Insolvency Trustee is required to administer your personal bankruptcy and will guide you through the process. Once all steps have been completed, you will receive your discharge from bankruptcy.

Step 1

Book a free consultation

Take the first step and speak to one of our experts. It’s free, confidential, and without judgment. We will review your personal and financial situation and ask you questions about your debts, income, and assets. Your payments will be based on your income and household situation, and the type and resale value of your assets.

Step 2

We prepare your documents

If bankruptcy is determined to be the right solution for you, we will prepare all documents for you to sign. Your trustee will file your documents with the Office of the Superintendent of Bankruptcy. All creditors must stop contacting you or taking any further collection action.

Step 3

Your creditors are notified

Your trustee will notify your creditors that you have filed for bankruptcy and provide them with your documentation. If you have assets or significant household income, we’ll work with you to set up payment arrangements you can afford or discuss alternatives.

Step 4

Fulfill your obligations

You start fulfilling the terms of your bankruptcy by fulfilling your payment agreement, submitting monthly income and expense statements and attending two financial counselling sessions that will help you stay debt-free. In most cases, once you’ve fulfilled your duties and your payments are complete, you’ll receive your discharge from bankruptcy. You can now start restoring your credit and living debt free.

How to qualify for a bankruptcy

Your debt has become unmanageable
You are unable to make payments when they become due
You owe over $1,000 in unsecured debt (credit cards, tax debt, student loans, payday loans, etc.)
You are a Canadian resident, own property in Canada or do business in Canada
You are not currently in a bankruptcy

See if you qualify Call: 1-855-884-9243

Key benefits of a bankruptcy

Fast timeline to get out of debt

Often costs less than other debt relief options

Most debts can be eliminated

What people are saying

Testimonials

Bromwich+Smith made the whole process seamless and effortless. From the first phone call right through to the final stages I felt like I mattered, there was nothing for me to be ashamed of and that it was a fresh start! Thank you so much for giving me a life again! I highly recommend this service!

Alex

Bromwich+Smith made the process of my bankruptcy claim so straightforward. The team’s kind demeanour in all of our communications was more than compassionate and helpful. The stress relief provided by them has truly been a life saver.

Jayna

The consultants are very pleasant, knowledgeable and thorough. They make themselves available by phone, text and email. I felt that they dealt with me and my delicate issue with great respect. I didn’t feel ashamed or judged. I appreciate them making this difficult time so much easier for me to go through.

Joan

I highly recommend Bromwich+Smith for any Canadian who’s in a tough situation financially. I definitely wish I had heard about them sooner but I’m glad it wasn’t too late for me when I did.

Jasmine

I’m so glad I found Bromwich+Smith when I did! It was perfect timing even though at the time I wasn’t very hopeful that anyone could help me. They were able to get me protected from creditors within 48 hours of contacting them and at a very affordable rate.

Maaji

My experience with Bromwich & Smith has been incredible, the staff I have dealt with have been so professional, caring and non-judgemental. They have gone over and above to get me where I need to be. I highly recommend Bromwich & Smith

Johanne

I was very distressed when I contacted Bromwich+ Smith and after talking with them I felt like my financial life was finally in professional hands. They guided me through the process and made sure I understood everything.

Garth

Questions answered

FAQ’s

We have put together a list of common questions and answers about personal bankruptcy. A Licensed Insolvency Trustee can also walk you through all your options and answer any questions you have.

What are the disadvantages of filing for bankruptcy?

There are several considerations to review before you file for bankruptcy:

You potentially lose all non-exempt assets and may be sold to satisfy creditor debts
You must submit monthly income and expense statements to your trustee
Your monthly payments are based on your income, which can fluctuate if there are changes in your monthly income
Some of your tax refunds and other tax credits are returned to your trustee for administration
Your credit cards are cancelled, and your credit rating is negatively impacted

What debts cannot be eliminated by bankruptcy?

Fines and penalties imposed by a court
Child support and maintenance
Spousal alimony
Any award by court for damages for intentionally inflicting bodily harm, wrongful death or sexual assault
Debts or money owing due to fraud, embezzlement, misappropriation or misconduct
Money owing for things stolen
Student loans (if it has not been seven years since your last date of study)
Secured loans (mortgages, car loans) or secured liens on property
In some unique situations, gambling debts

What is surplus income?

Surplus income is a calculation established by the federal government based on household income and the number of people within that household. Each year, the government issues surplus income thresholds for which an individual person can have a reasonable standard of living. These threshold limits determine how much you would need to pay in surplus income when filing bankruptcy. Your Licensed Insolvency Trustee will determine if you need to make surplus income payments monthly, how much and for how long.

What assets do I get to keep after filing for bankruptcy?

Losing all your assets is one of the most common myths about bankruptcy. You will not lose everything when you file for bankruptcy, however, there are several factors to consider, and each province and territory outlines a list of exemptions (what assets you get to keep). For example: many provinces and territories allow you to keep clothing, household furnishings, tools & equipment used to earn a living, registered investments such as RRSP/RRIF/RDSP, most pension plans, some equity in your home, and a vehicle (limited value). Since the exempt assets and conditions vary by province and territory, please speak to your Licensed Insolvency Trustee to determine what specifically applies to your financial situation.

How does filing for bankruptcy impact my credit rating?

A Bankruptcy stays on your credit report for six  years after the discharge date, or seven years after the date filed without a discharge date. If you file a second bankruptcy, then both bankruptcies stay on your credit report for 14 years after the discharge dates. You are assigned a rating of R9.

Still have a question?

If you are struggling with debt and want to know if bankruptcy is the best debt relief solution for you, give us a call. We offer free, confidential, non-judgmental consultations to better understand your unique situation and we will find an option to help you become debt free.

Get in touch

Managing debt can be difficult, but we’re here to help. Our Insolvency Advisors can show you your options and help you choose the best plan for you.

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1-855-884-9243

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